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Zeballos, Ariel C., Seifert, Ralf W. and Protopappa-Sieke, Margarita (2013). Single product, finite horizon, periodic review inventory model with working capital requirements and short-term debt. Comput. Oper. Res., 40 (12). S. 2940 - 2950. OXFORD: PERGAMON-ELSEVIER SCIENCE LTD. ISSN 1873-765X

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Abstract

In this paper, we build on a single product, finite horizon, periodic review inventory management setting and include key financial aspects such as working capital constraints, payment delays and multiple sources of financing. We numerically solve for the optimal working capital target and the order-up-to level using an embedded Nelder and Mead optimization, and we perform sensitivity analysis on cash flows and short-term debt levels. Our numerical experiments show that when access to short-term debt is granted, the expected cash flows are indeed fairly insensitive to varying short-term debt premiums. However, when short-term debt becomes prohibitive or when downstream payment delays increase, the required working capital target inflates rapidly. (C) 2013 Elsevier Ltd. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Zeballos, Ariel C. UNSPECIFIED UNSPECIFIED UNSPECIFIED Seifert, Ralf W. UNSPECIFIED UNSPECIFIED UNSPECIFIED Protopappa-Sieke, Margarita UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-471383
DOI:	10.1016/j.cor.2013.07.008
Journal or Publication Title:	Comput. Oper. Res.
Volume:	40
Number:	12
Page Range:	S. 2940 - 2950
Date:	2013
Publisher:	PERGAMON-ELSEVIER SCIENCE LTD
Place of Publication:	OXFORD
ISSN:	1873-765X
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language MODIGLIANI-MILLER PROPOSITIONS; ECONOMIC ORDER QUANTITY; PERMISSIBLE DELAY; UNCERTAIN CAPACITY; SIMPLEX-METHOD; POLICIES; DEMAND Multiple languages Computer Science, Interdisciplinary Applications; Engineering, Industrial; Operations Research & Management Science Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/47138