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Value-Based Inventory Management

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  • Grzegorz Michalski

Abstract

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

Suggested Citation

  • Grzegorz Michalski, 2013. "Value-Based Inventory Management," Papers 1301.3826, arXiv.org.
    • Handle: RePEc:arx:papers:1301.3826
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    File URL: http://arxiv.org/pdf/1301.3826
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    References listed on IDEAS

    as
    1. Sartoris, William L & Hill, Ned C, 1983. "A Generalized Cash Flow Approach to Short-Term Financial Decisions," Journal of Finance, American Finance Association, vol. 38(2), pages 349-360, May.
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    Cited by:

    1. Michalski, Grzegorz, 2012. "Risk sensitivity indicator as correction factor for cost of capital rate," MPRA Paper 43399, University Library of Munich, Germany, revised 02 Sep 2012.
    2. Eleonora Ionela Focsan & Vasile Cristian Ioachim Miron, 2016. "A Method Of The Minimizing Of The Total Acquisitions Cost With The Decreasing Variable Demand," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 169-174, February.
    3. Wojnowski Marcin, 2013. "Planning of sales on the example of the companyindustry works related to the construction of buildings and civil engineering," Working Papers hal-00813546, HAL.
    4. Michalski, Grzegorz, 2010. "Planning Optimal From The Firm Value Creation Perspective. Levels Of Operating Cash Investments," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 198-214, March.
    5. Grzegorz Michalski & Aleksander Mercik, 2013. "Polish and Silesian Non-Profit Organizations Liquidity Strategies," Papers 1301.3825, arXiv.org.

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    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

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