Value-Based Inventory Management

Value-Based Inventory Management, Journal of Economic Forecasting, 9/1, 82-90, 2008

9 Pages Posted: 7 Jan 2008 Last revised: 3 Jan 2013

See all articles by Grzegorz Michalski

Grzegorz Michalski

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics

Date Written: January 3, 2013

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.

Keywords: Inventory Management, Value based management, Liquidity measures, Demand for Liquidity, Liquidity balances, Risk, Uncertainty, Real Options, Option Value of Liquidity, Short-Term Financial Management, Working Capital Management

JEL Classification: G32, G11, M11, D81, O16, P33, P34

Suggested Citation

Michalski, Grzegorz, Value-Based Inventory Management (January 3, 2013). Value-Based Inventory Management, Journal of Economic Forecasting, 9/1, 82-90, 2008. Available at SSRN: https://ssrn.com/abstract=1081276 or http://dx.doi.org/10.2139/ssrn.1081276

Grzegorz Michalski (Contact Author)

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics ( email )

ul. Komandorska 118-120
Wroclaw, 53-345
Poland

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