A Value-oriented Framework for Inventory Management

Grzegorz Michalski

doi:10.2478/v10033-009-0019-y

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A Value-oriented Framework for Inventory Management

South East European Journal of Economics and Business

Volume 4 (2009): Issue 2 (November 2009)

By: Grzegorz Michalski

Open Access

|Jun 2011

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.

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