Optimal Inventory Order Quantities When Volume Discounts Are Available a Wealth Maximization Approach
Document Type
Article
Publication Date
1-1-1997
Description
This study utilizes standard finance techniques for locating optimal inventory order quantities when quantity price discounts are available. Current inventory investment methodology concentrates on minimizing total inventory costs each period without considering the size and timing of relevant cash flows. This study alternatively develops a procedure which explicitly recognizes the goal of shareholder wealth maximization. Wealth maximizing procedures are developed for various sets of assumptions and contrasted with traditional methodology.
Citation Information
Followill, Richard A.. 1997. Optimal Inventory Order Quantities When Volume Discounts Are Available a Wealth Maximization Approach. Journal of Economics and Finance. Vol.21(2). 39-49. https://doi.org/10.1007/BF02920762 ISSN: 1055-0925