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Stocks volume optimization and their management in case of risk

Author

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  • Mihaela Tulvinschi

    (Financial – Accounting Department, “Stefan cel Mare” University of Suceava, Faculty of Economic Sciences and Public Administration)

Abstract

Stocks management is an important component of the accounting works and the research thereto may be developed on several directions, considering the array of practical situations that may occur in different fields of the economic activity. A main objective of stocks volume optimization refers to the stocks establishment and maintenance under cost minimization conditions. The attainment of this ob-jective requires the harmonization of the contradictory relation between the purchasing expenses and the storage expenses. The most frequent situation in stocks management is when the spans of time be-tween purchasing are not equal, running the risk that the delivery time agreed by contract may not always be observed. In this case, the contradictory relation between profitableness and risk is ques-tionable, being necessary to make up a safety stock. A realistic solution is the one optimizing the costs generated by the safety stock establishment, considering the purchasing delay frequency.

Suggested Citation

  • Mihaela Tulvinschi, 2008. "Stocks volume optimization and their management in case of risk," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 55, pages 9-16, November.
    • Handle: RePEc:aic:journl:y:2008:v:55:p:9-16
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