2009 | 4 | 2 | 97-102
Article title

A Value-oriented Framework for Inventory Management

Title variants
Languages of publication
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.
Physical description
  • Department of Corporate Finance and Value Management, Wroclaw University of Economics
  • BRIGHAM E.F., DAVES P.R., Intermediate Financial Management, Thomson, Mason 2004.
  • FABOZZI F. J., G. FONG, Zarządzanie portfelem inwestycji finansowych przynoszących stały dochód, WN PWN, Warszawa 2000.
  • FABOZZI F.J., Investment Management, Prentice Hall, Upper Saddle River 1999.
  • JAJUGA K., Zarządzanie kapitałem, Wydawnictwo AE, Wrocław 1993.
  • LUENBERGER D. G., Teoria inwestycji finansowych, WN PWN, Warszawa 2003.
  • MANESS T.S., J.T. ZIETLOW, Short-Term Financial Management, Dryden Press, Fort Worth 1998.
  • MICHALSKI G., Leksykon zarządzania finansami, CHBeck, Warszawa 2004.
  • PIOTROWSKA M., Finanse spółek. Krótkoterminowe decyzje finansowe, Wydawnictwo AE, Wrocław 1997.
  • PLUTA W., G. MICHALSKI, Krótkoterminowe zarządzanie kapitałem, CHBeck, Warszawa 2005.
  • SARTORIS W., HILL N., A Generalized Cash Flow Approach to Short-Term Financial Decisions, [in:] Pogue A., "Cash and Working Capital Management", The Journal of Finance, May 1983, s. 349-360.
  • SCHERR F. C., Modern Working Capital Management. Text and Cases, Prentice Hall, Englewood Cliffs 1989.
  • SIERPIŃSKA M., WĘDZKI D., Zarządzanie płynnością finansową w przedsiębiorstwie, WN PWN Warszawa 2005.
  • BAUMOL W.J., The Transactions Demand for Cash: An Inventory
  • Theoretic Approach, Quarterly Journal of Economics", nr 66, Nov 1952, p. 545-556.
  • BECK S.E., D.R. Stockman, Money as Real Options in a Cash-in-Advance Economy, Economics Letters, 2005, vol. 87, p. 337-345.[Crossref]
  • BERANEK W., Analysis for Financial Decisions, R. D. IRWIN, Homewood 1963.
  • BOUGHEAS S., Mateut S., Mizen, P., Corporate trade credit and inventories: New evidence of a trade-off from accounts payable and receivable, Journal of Banking & Finance, vol. 33, no. 2, 2009, p. 300-307.[WoS][Crossref]
  • COTE J.M., C.K. Latham, The Merchandising Ratio: A Comprehensive Measure of Working Capital Strategy, Issues in Accounting Education, vol. 14, no. 2, May 1999, p. 255-267.
  • EMERY G.W., Positive Theories of Trade Credit, Advances in Working Capital Management, JAI Press, vol. 1, 1988, p. 115-130.
  • GALLINGER G., A. J. Ifflander, Monitoring Accounts Receivable Using Variance Analysis Financial Management, 1986, 69-76.
  • GRABER P.J., Assets, The Accounting Review, vol. 23, no. 1, Jan. 1948, p. 12-16.
  • HOLMSTROM B., J. Tirole, LAPM: a liquidity-based asset pricing model, Journal of Finance, 2001, vol. 56, p. 18370-1867 {WP6673, National Bureau of Economic Research, Cambridge, 1998}.
  • KALBERG J. G., K. L. Parkinson, Corporate liquidity: Management and Measurment, IRWIN, Homewood 1993.
  • KHOURY N.T., K.V. Smith, P.I. MacKay, Comparing Working Capital Practices in Canada, the United States and Australia, Revue Canadienne des Sciences de l'Administration, vol. 16, no. 1, Mar. 1999, p. 53-57.
  • KIM C-S., D. C. Mauer, A. E. Sherman, The Determinants of Corporate Liquidity: Theory and Evidence, Journal of Financial and Quantitative Analysis, vol. 33, nr 3, 1998.[WoS][Crossref]
  • KIM Y. H., J. C. Atkins, Evaluating Investments in Accounts Receivable: A Wealth Maximizing Framework, Journal of Finance, vol. 33, nr 2, 1978, p. 403-412.[Crossref]
  • LEVY H., D. Gunthorpe, Introduction do Investments, South-Western College Publishing, Cincinnati 1999.
  • LOFTHOUSE S., Investment Management, Wiley, Chichester 2005.
  • LYN E. O., G. J. Papaioannou, Liquidity and the Financing Policy of the Firm: an Empirical Test, Advances in Capital Management, Londyn 1996, vol. 3, p. 65-83.
  • MERTON R.C, A.F. Perold, Theory of Risk Capital in Financial Firms, w: D.H. Chew, The New Corporate Finance. Where Theory Meets Practice, McGraw-Hill, Boston 1999.
  • MILLER M.H., D. Orr, A Model of the Demand for Money by Firms, Quarterly Journal of Economics, 1966, nr 80, p. 413-435.
  • MILLER T. W., B. K. Stone, The Value of Short-Term Cash Flow Forecasting Systems, Advances in Working Capital Management, JAI Press Inc., London 1996, vol. 3, p. 3-63.
  • MUELLER F.W., Corporate Working Capital and Liquidity, The Journal of Business of the University of Chicago, vol. 26, no. 3, Jul. 1953, p. 157-172.
  • MYERS S. C., R. G. RAJAN, The Paradox of Liquidity, Quarterly Journal of Economics 113, nr 3, Cambridge, 1998, p. 733-771.
  • OPLER T., R. STULZ, R. Williamson, The determinants and implications of corporate cash holdings, Journal of Financial Economics, vol. 52, no. 1, 1999, p. 3-46.[WoS][Crossref]
  • ORLICKY J., Material Requirements Planning, McGraw-Hill, New York 1975.
  • PARRINO R., D.S. Kidwell, Fundamentals of Corporate Finance, Wiley, New York 2008.
  • PETERSON R., E.A. Silver, Decision Systems for Inventory Management and Production Planning, Wiley, New York 1979.
  • PIOTROWSKA M., Short-term financial decisions, WUE, Wroclaw 1997.
  • PLOSSL G.W., Production and Inventory Control, Principles and Techniques, Prentice Hall, Englewood Cliffs 1985.
  • POTESHMAN A., R. PARRINO, M. WEISBACH, Measuring Investment Distortions when Risk-Averse Managers Decide Whether to Undertake Risky Project, Financial Management, vol. 34, Spring 2005, p. 21-60.
  • REILLY F.K., Investments, The Dryden Press, Fort Worth 1992.
  • STONE B. K., The Use of Forecasts and Smoothing in Control - Limit Models for Cash Management, Financial Management, 1972, p. 72-84.
  • TOBIN J., Liquidity Preference as Behavior Toward Risk, Review of Economic Studies, 1958 r. nr 25, p. 65-86.[Crossref]
Document Type
Publication order reference
YADDA identifier
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.