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Author:Luciano, E.
Peccati, L.
Title:Some basic problems in inventory theory: the financial perspective
Journal:European Journal of Operational Research
1999 : APR 16, VOL. 114:2, p. 294-303
Index terms:OPERATIONAL RESEARCH
INVENTORIES
THEORIES
Language:eng
Abstract:The analysis of the standard EOQ problem from a financial perspective is proposed. The case of mixed financing (equity and debt) is considered and the results are compared with those stemming from the Average cost approach. It is shown that no prediction about the result can be made. The authors solve completely the problem of finding the best financing policy. As the financial framework suggests to consider an infinity of inventory cycles, the authors investigate the effects on the solution of a more realistic finite truncation of the chain.
SCIMA record nr: 194882
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