search query: @indexterm NET PRESENT VALUE / total: 71
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| Author: | Ardalan, A. |
| Title: | A discounted value approach in developing optimal ordering policies |
| Journal: | Engineering Economist
1991 : SUMMER, VOL. 36:4, p. 297-306 |
| Index terms: | DISCOUNTED CASH FLOW INVENTORY CONTROL NET PRESENT VALUE FINANCIAL CONTROL DECISION MAKING |
| Language: | eng |
| Abstract: | A well-known fact in economics is the inverse relationship between the price and demand of most products. Currently available inventory models that consider a price change assume that demand remains constant as the price is reduced. It is possible that the reduction in price may result in an increase in demand, the reason for the sale offered by many businesses. The familiar net present value approach is discussed that is commonly used in financial decision making to analyze and formulate optimal inventory ordering policies. This approach is more accurate and straightforward than the average annual cost method that is usually used for comparison of alternative inventory policies. |
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