Decreasing Negative The Delivery Risk Influence On The Recepient's Firm Value: Portfolio Approach
Source: Munich Personal Repec Archive
The basic financial purpose of an enterprise is maximization of its value. Inventory management should also contribute to realization of this fundamental aim. The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This paper presents the consequences for the recipients firm that can result from operating risk that is related to delivery risk generated by the suppliers. The present paper offers a method that uses portfolio management theory to choose the suppliers.