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| Tekijä: | Chung, K. Lin, S. |
| Otsikko: | A note on the optimal cycle length with a random planning horizon |
| Lehti: | Engineering Economist
1995 : SUMMER, VOL. 40:4, p. 385-392 |
| Asiasana: | PLANNING ECONOMICS ENGINEERS |
| Kieli: | eng |
| Tiivistelmä: | In 1993, Moon and Yun studied the economic order quantity model with a random planning horizon. They adopted the discounted cash flow to fully recognize the time value of money in determining the optimal cycle length. With those bounds, the algorithm of Moon and Yun can be simplified. The timing of cash flows from an asset has a lot to do with the desirability of the investment. Investment alternatives that produce the same total returns, but with differing times, are not usually equally attractive, due to the time value of money. |
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