The Empirical Determinants of Inventory Levels in High-Volume Manufacturing
Name
lieber2.pdf
Size
68.89 KB
Format
Adobe PDF
Checksum (MD5)
7dec141f39df81859772c2ebe4b4f97b
Author(s)
Lieberman, Marvin B.
Demeester, Lieven
Helper, Susan
Date Issued
February 6, 1996
Abstract
This study uses survey data on several hundred automotive suppliers in North America
to evaluate the determinants of inventory levels in high-volume discrete parts manufacturing. We
assess the magnitude of raw materials, work-in-process, and finished goods inventories, as well as
production lot sizes and through-put times. Results are broadly consistent with the EOQ
formula and related models of optimal inventory holding. Inventories are shown to be jointly
determined by technological factors and managerial practices.
Several categories of managerial practices are found to be important. Low inventories are
linked to employee training and problem solving activities and frequent communication with
customers. More unexpected findings show the absence of inventory differences between USowned
and Japanese-owned plants operating in the United States. This suggests that Japanese
transplant parts makers have not been completely successful in adapting Japanese manufacturing
methods to the US environment.
Subjects
inventory
JIT manufacturing
automotive
Persistent DSpace Link
