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A Value-oriented Framework for Inventory Management

Grzegorz Michalski ()

South East European Journal of Economics and Business, 2009, vol. 4, issue 2, 97-102

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 (search for similar items in EconPapers)
Date: 2009
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DOI: 10.2478/v10033-009-0019-y

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South East European Journal of Economics and Business is currently edited by Adnan Efendic, Vesna Babić-Hodović and Aziz Šunje

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