Some basic problems in inventory theory: The financial perspective |
| |
| Affiliation: | 1. School of Economics & Management, Beihang University, 37 Xueyuan Road, Haidian District, Beijing 100191, China;2. Beijing Key Laboratory of Emergency Support Simulation Technologies for City Operations, Beijing 100191, China;3. Beijing International Science and Technology Cooperation Base for City Safety Operation and Emergency Support, Beijing 100191, China;4. LeBow College of Business, Drexel University, 3141 Chestnut Street, Philadelphia, PA 19104, United States |
| |
| 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. We solve completely the problem of finding the best financing policy. As the financial framework suggests to consider an infinity of inventory cycles, we investigate the effects on the solution of a more realistic finite truncation of the chain. We show that the finite chain solution is always smaller than the infinite chain one. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
