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A Value-oriented Framework for Inventory Management

Author

Listed:
  • Michalski Grzegorz

    (Department of Corporate Finance and Value Management, Wroclaw University of Economics)

Abstract

The basic financial purpose of a firm is to maximize its value. An inventory management system should also contribute to the realization of this basic aim. Many current asset management models found in financial management literature were constructed with the assumption of book profit maximization as their basic aim. However these models could lack the means for realizing a different aim, i.e., the maximization of enterprise value. This article presents a modified value-based inventory management model.

Suggested Citation

  • Michalski Grzegorz, 2009. "A Value-oriented Framework for Inventory Management," South East European Journal of Economics and Business, Sciendo, vol. 4(2), pages 97-102, November.
  • Handle: RePEc:vrs:seejeb:v:4:y:2009:i:2:p:97-102:n:10
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