ABSTRACT：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.vf学生成绩查询系统设计课程设计报告+流程图
Key Words: 3SLS, Inventory Control, Economic Order Quantity,
Buffer Stock
I. INTRODUCTION
Working capital management is one of the important areas of financial planning
and control. This broad area covers the management and control of Cash and
Banking Transactions, Short-term Investments, Receivables from Debtors, Credit
Analysis, Inventories and Current Liabilities. Inventories and Accounts Receivables are the two important components of Current Assets. In their work on cost accounting Mats, Curry, Frank and Khan (1982) estimated that inventories, on average, cover one third of the value of total assets in a balance sheet. Similarly, ‘Receivables from Customers’ are another important element of the Current Assets. Inventories and receivables are illiquid assets and are important for the following reasons:
(1) They appear in the balance sheet at their historical value, but their realization depends on the present and future business environment and economic conditions.
(2) They represent a significant share in total assets. Consequently, any change in the magnitude of these assets can affect the profitability and financial viability of a business.
(3) The volume of sales revenue and profitability are directly correlated with the inventory-level and credit policies of a firm A soft credit policy with an interest on receivables is considered a cause of higher sales revenue and profit. Similarly, an 本文来自辣'文,论,文·网原文请找腾讯32.49114 receivables' policies always
have been important element in the financial management of a company, and
various analyses recommend different options and tools. Relatively less importance has been given to the conversion of inventories into receivables. In order to help remedy this shortcoming, the present study has the following objectives:
1) To identify the determinants of closing inventories, and2441