Ayub, Mehar (2001): SIMULTANEOUS DETERMINATION OF INVENTORIES AND ACCOUNTS RECEIVABLE. Published in: Managerial and Decision Economics (June 2005): pp. 259-269.
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The study presents a model based on 3,375 observations from industrial firms in Pakistan, and the Three-Stage Least Square (3SLS) technique has been applied for the estimation. The results indicate that the Economic Order Quantity (EOQ) of inventories is not a constant magnitude; it is a variable closely associated with 'time trend'. While the ‘buffer stock’ element can be estimated through the constant term of an equation. Receivables from customers show a negative correlation with liquid assets and the cost of production. Receivables are also shown to act as substitute for closing inventories.
|Item Type:||MPRA Paper|
|Original Title:||SIMULTANEOUS DETERMINATION OF INVENTORIES AND ACCOUNTS RECEIVABLE|
|Keywords:||3SLS; Inventory Control; Economic Order Quantity; Buffer Stock|
|Subjects:||M - Business Administration and Business Economics; Marketing; Accounting > M4 - Accounting and Auditing > M41 - Accounting
G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
|Depositing User:||Ayub Mehar|
|Date Deposited:||10. Oct 2006|
|Last Modified:||13. Feb 2013 04:24|
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