| Автор | Bechtold, Stephen, E. |
| Автор | Nast, Donald, A. |
| Дата выпуска | 1978 |
| dc.description | This paper critically examines and compares the ROQ inventory model, which is based upon a criterion of maximizing return on investment in inventory, with the familiar EOQ inventory model, which results from the criterion of maximizing residual income from investment in inventory. The EOQ model generally encourages a larger investment in inventory than the investment suggested by the ROQ model. It is shown that this additional investment always earns at a rate that is never less than the opportunity cost of capital, and therefore, maximizes shareholder wealth. It is also demonstrated that the ROQ may lead to unrealistically high order frequencies. |
| Издатель | Sage Publications |
| Название | A Comparison of Two Inventory Decision Models |
| Тип | Journal Article |
| DOI | 10.1177/014920637800400109 |
| Print ISSN | 0149-2063 |
| Журнал | Journal of Management |
| Том | 4 |
| Первая страница | 85 |
| Последняя страница | 95 |
| Аффилиация | Nast, Donald, A., Florida State University |
| Выпуск | 1 |
| Библиографическая ссылка | Chase, R. B., & Acquilano, N.J.Production and operations management. Homewood, Ill.: Irwin, 1973. |
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| Библиографическая ссылка | Schall, L. D., & Haley, C. W.Introduction to financial management. New York: McGraw-Hill, 1977. |
| Библиографическая ссылка | Schroeder, R. G., & Krishnan, R.Return on investment as a criterion for inventory models. Decision Sciences1976, 7, 697-704. |
| Библиографическая ссылка | Van Horne, J. C.Financial management and policy (4th ed.). Englewood Cliffs, N.J.: Prentice-Hall, 1977. |
