Abstract
Abstract The business cycle during a recession leads to negative effects on raising funds and operations management of company. In particular, the company with many inventories in the recession causes liquidity problem. Which leads to frustration in the competitive strategy management. In this case the company experiencing cash or liquidity problems attempts to reduce its investment in inventory. However, reducing inventory investment makes problems to increase inventory operating costs. This paper presents sensitivity of total cost compared to the size for reducing inventory investment. This will guarantee the relevance of the reducing inventory investment. Optimal Inventory levels also may be required to be less than the optimal levels without reduction on inventory investments. Key Words : Inventory Investments, Raising funds, Sensitivity Analysis, (ROP,Q) Model, Poisson Process * 본 논문은 2013년도 가천대학교 교내연구비 지원에 의한 결과임.(GCU-2013-R389)Received 30 November 2013, Revised 20 December 2013Accepted 20 December 2013Corresponding Author: Hee-Chul Kwon(Gachon University) Email: somy@gachon.ac.krⒸ The Society of Digital Policy & Management. All rights reserved. This is an open-access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.otg/licenses/by-nc/3.0), which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is ISSN: 1738-1916 properly cited.
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