Journal Article

Evidence of improved inventory control

Abstract: Inventory data applied to a standard partial stock-adjustment model demonstrate that inventory control, defined by desired marginal inventory-sales ratios and speeds of adjustment, improved in the last decade or so, particularly in the manufacturing sector. In addition, the evidence suggests that, contrary to popular wisdom, the net effect of these changes in inventory control has been to increase the volatility of inventory investment in both the manufacturing and trade sectors.

Keywords: Inventories;

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Economic Review

Publication Date: 1992

Volume: 78

Issue: Jan

Pages: 3-12