publication . Other literature type . Article . 2010

Drivers of Finished-Goods Inventory in the U.S. Automobile Industry

Gérard P. Cachon; Marcelo Olivares;
  • Published: 01 Jan 2010
  • Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Abstract
Automobile manufacturers in the U.S. supply chain exhibit significant differences in their days of supply of finished vehicles (average inventory divided by average daily sales rate). For example, from 1995 to 2004, Toyota consistently carried approximately 30 fewer days of supply than General Motors. This suggests that Toyota's well-documented advantage in manufacturing efficiency, product design, and upstream supply chain management extends to their finished-goods inventory in their downstream supply chain from their assembly plants to their dealerships. Our objective in this research is to measure for this industry the effect of several factors on inventory h...
Subjects
free text keywords: empirical, supply chain management, distribution, product variety, inventory theory, manufacturing flexibility, Management Science and Operations Research, Strategy and Management, Inventory theory, Distribution networks, Supply chain, Supply chain management, General motors, Automotive industry, business.industry, business, Finished good, Economics, Product design, Operations management
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