Optimal Inventory Order Quantities When Volume Discounts Are Available a Wealth Maximization Approach

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

Bond Review and Rating Change Announcements: An Examination of Informational Value and Market Efficiency

This paper examines the impact of announcements of both bond rating reviews and rating changes on equity returns. We find that announcements of review for possible down grading of debt have a significant negative effect on stock prices while subsequent actual downgrades have a negligible impact. Further, we find that press releases convey new information to the market whereas the subsequent reporting of this information in the financial press causes little market reaction. We conclude that extreme care regarding details of the dissemination of financial information must be exercised in any event study

Financial Cost Inclusive Reformulations of Inventory Lot Size Models

Inventory systems for deterministic demand have been extensively discussed in the literature. Generally, lot size models have been developed to minimize per-period total inventory costs. Financial management theory, however, strongly suggests that the fundamental objective of management is to maximize shareholder wealth. Thus, in theory, inventory policy decisions should be made within a net present value, wealth maximization context. This paper reformulates the uniform replenishing rate inventory model in a present value framework under two cash-flow scenarios. In the first scenario, which is shown to be equivalent to the classical EOQ model, it is demonstrated that the classical EOQ methodology is consistent with the present value reformulation. In the second scenario, which is consistent with the classical uniform replenishing rate model, the present value reformulation recommends substantially higher optimal order quantities than the classical model and provides insight about both the traditional methodology and future uses of the present value methodology

The After-Tax Mortgage Refinancing Model: Closed-Form Solution and Analysis

Richard A. Followill is an Assistant Professor of Finance, John A Walker College of Business at Appalachian State University. Linda L. Johnson is an Associate Professor of finance, College of Business at University of South Florida at Fort Myer

Technical note: Heterogeneity dose calculation accuracy in IMRT: Study of five commercial treatment planning systems using an anthropomorphic thorax phantom

The purpose of this study was to determine the accuracy of five commonly used intensity-modulated radiation therapy (IMRT) treatment planning systems (TPSs), 3 using convolution superposition algorithms or the analytical anisotropic algorithm (CSA∕AAAs) and 2 using pencil beam algorithms (PBAs), in calculating the absorbed dose within a low-density, heterogeneous region when compared with measurements made in an anthropomorphic thorax phantom. The dose predicted in the target center met the test criteria (5% of the dose normalization point or 3 mm distance to agreement) for all TPSs tested; however, at the tumor-lung interface and at the peripheral lung in the vicinity of the tumor, the CSA∕AAAs performed better than the PBAs (85% and 50%, respectively, of pixels meeting the 5%∕3-mm test criteria), and thus should be used to determine dose in heterogeneous regions