About inventory models, a concern is 'often made [that] any resemblances between the models constructed and reality are … purely coincidental.' One set of factors not usually considered in textbook models of inventory decisions is suggested by … affect inventory decisions, and how? I study four hypotheses. The first is that the market could be a side-show, with no …

Among practitioners, inventory is often thought to be the root of all evil in operations management. The stock market … hates it, the media abhors it, and managers have come to fear it. But high inventory levels can also be the result of … strategic buying and high-availability strategies. The problem is that when the market sees lots of inventory, it cannot tell …