Adapting inventory models for handling various payment structures using net present value equivalence analysis

Adapting inventory models for handling various payment structures using net present value equivalence analysis

Classic inventory models use average cost functions. It is generally accepted that these models should account for the time value of money. They do so not by considering the timing of cash-flows, but by including opportunity costs. The Net Present Value (NPV) framework has long been used to compare these models with. We formalise NPV Equivalence Analysis (NPVEA) under various payment structures...

Production and Inventory Model Using Net Present Value

Average Costs versus Net Present Value: a comparison for multi-source inventory models

While the net present value (NPV) approach is widely accepted as the right framework for studying production and inventory control systems, average cost (AC) models are more widely used. For the well known EOQ model it can be verified that (under certain conditions) the AC approach gives near optimal results, but does this also hold for more complex systems? In this paper it is argued that for ...

Project scheduling optimization for contractor’s Net present value maximization using meta-heuristic algorithms: A case study

Today's competitive conditions have caused the projects to be carried out in the least possible time with limited resources. Therefore, managing and scheduling a project is a necessity for the project. The timing of a project is to specify a sequence of times for a series of related activities. According to their priority and their latency, so that between the time the project is completed and ...

Project Portfolio Selection with the Maximization of Net Present Value

Projects scheduling by the project portfolio selection, something that has its own complexity and its flexibility, can create different composition of the project portfolio. An integer programming model is formulated for the project portfolio selection and scheduling.Two heuristic algorithms, genetic algorithm (GA) and simulated annealing (SA), are presented to solve the problem. Results of cal...