A Value-Oriented Framework for Inventory Management

South East European Journal of Economics and Business, November 2009

12 Pages Posted: 13 May 2011

See all articles by Grzegorz Michalski

Grzegorz Michalski

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics

Date Written: November 11, 2009

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.

Keywords: inventory management, value-based management, free cash flow, working capital management, short-run financial management

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

Suggested Citation

Michalski, Grzegorz, A Value-Oriented Framework for Inventory Management (November 11, 2009). South East European Journal of Economics and Business, November 2009. Available at SSRN: https://ssrn.com/abstract=1838848

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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