Corporate inventory management with value maximization in view.

摘要

The basic financial purpose of a firm is maximization of its value. Inventory management should contribute to the realization of this basic aim. Many current asset management models that we can find in the literature relating to financial management were constructed with the assumption of book profit maximization as the basic aim. It is argued that these models could be lacking in respect to another aim, i.e., maximization of the enterprise value. This article presents a modification of the value-based inventory management model.