A computational model for inventory management and planning
AbstractThe objective of the study is to determine the factors of the optimal level of merchandizing inventory. The study is based on a mathematical model. The results revealed some interesting findings. The most important conclusion is that the 'Usage of Material' or the Sales Volume is not the real determinate of the inventory volume. It is concluded in the model that the volume of inventories depends on the difference between the return on investment in the inventories and the rate of interest on short-term deposits. The traditional methods in cost accounting - Buffer Stock and Economic Order Quantity - have been reconciled with the profit maximization hypothesis.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 600.
Date of creation: 2000
Date of revision: 2002
Publication status: Published in Conference Proceedings, Cambridge University 2.1(2006): pp. 1-13
Inventory Control; Economic Order Quantity; Buffer Stock; Baumoul's Model; Optimization; Material Cost Accounting;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
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