Inventory Reduction in the Japanese Automotive Sector, 1965-1991
Author(s)
Lieberman, Marvin B.
Demeester, Lieven
Rivas, Ronald
Date Issued
September 10, 2002
Abstract
This paper traces the diffusion of “just-in-time” production in the Japanese
automotive sector, as reflected by inventory reductions in a sample of 52 suppliers and
assemblers. We show that most inventory reductions occurred during a remarkable burst
of activity starting in the late 1960s. Companies affiliated with Toyota were the early
adopters but were followed very quickly by others in Japan. By the late 1970s nearly all
of the firms in the sample had made drastic reductions in inventory. Work-in-process and
suppliers’ finished goods fell by nearly two thirds on average.
Subjects
Inventory
Just-In-Time Manufacturing
Auto Industry
Japan
Empirical Study
Persistent DSpace Link
