Inventory Reduction and Productivity Growth: A Comparison of Japanese and US Automotive Sectors
Author(s)
Asaba, Shigeru
Lieberman, Marvin B.
Date Issued
July 18, 2002
Series/Report no.
IMVP;184a
Abstract
This study asseses the inventory and productivity performance of the Japanese and US
automotive industries in recent decades. Within each country we distinguish between
vehicle assemblers and parts suppliers. In Japan, assemblers and suppliers made dramatic
inventory reductions and productivity gains, particularly during the 1970s. By
comparison, we find an unbalanced pattern for the United States: American assembly
plants have been streamlined but parts suppliers have stagnated. In both countries our
findings suggest a strong association between inventory reduction and productivity growth.
Subjects
inventory
productivity
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