This paper models the scale of the technology shocks as a decision variable whose value is determined by the production manager. It is shown that smaller shocks enhance profit in several ways and thus the firm has an incentive to adopt more reliable production technologies. The adoption of these...

There is evidence that the growth rate of GDP in the United States stabilized in 1984 and improvements in production management are frequently cited as a source. This paper defines the quality of production as the scale of the firm's production shock and assumes that the firm can exercise...

There is a substantial body of evidence to the effect that output is more volatile than sales among manufacturing industries. Numerous explanations have been advanced to account for this excess output volatility. Some examples are pro-cyclical inventory movements induced by a stockout-avoidance...

This paper estimates models of output, price and total inventory in various manufacturing sectors that allow inventories at different stages of fabrication to exert independent influences. The hypothesis tests generally reject the hypotheses that inventories are irrelevant or can be aggregated...