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The paper shows that taking inventory control out of the hands of competitive or exclusive retailers and assigning it to a manufacturer increases the value of a supply chain especially for goods whose demand is highly volatile. This is because doing so solves incentive distortions that arise...
Persistent link: https://www.econbiz.de/10011742575
The paper develops a simple theoretical model of inventory control in global supply chains. It identifies a role for intermediaries in managing inventory, and shows that inserting an intermediary as an additional link in a supply chain is profitable when demand volatility is high. It also...
Persistent link: https://www.econbiz.de/10010496944
Firms adjust to differences in market size and demand uncertainty by changing the frequency and size of their export shipments. In our inventory model, transportation costs and optimal shipment frequency are determined on the basis of demand as well as inventory and per shipments costs. Using a...
Persistent link: https://www.econbiz.de/10010338670
inventories react strongly and positively to news about future increases in total factor productivity. Theory suggests that the …
Persistent link: https://www.econbiz.de/10012119865
We identify total factor productivity (TFP) news shocks using standard VAR methodology and document a new stylized fact: in response to news about future increases in TFP, inventories rise and comove positively with other major macroeconomic aggregates. We show that the standard theoretical...
Persistent link: https://www.econbiz.de/10012213178
This paper is the first application of the singular value decomposition in general equilibrium theory. Every technology …
Persistent link: https://www.econbiz.de/10010229880
We develop a dynamic model of inventory investment and trade to examine how firms adjust to changes in international trade costs when facing a risk of stockouts due to demand uncertainty and order lead times for imports. We study two strategies firms may use to avoid stockouts, namely holding...
Persistent link: https://www.econbiz.de/10013536154
importance, formal research on the contribution of supply chain logistics, including the relative impacts across different … logistics dimensions, is less. The importance of supply chains has been recently been brought to the forefront in the wake of … examine the relative effects of the different aspects of supply chain logistics on economic growth. Placing the empirical …
Persistent link: https://www.econbiz.de/10012219347
We consider a multi-service transportation system in which passengers are heterogeneous along two dimensions, namely ideal departure time and value of time, leading to both horizontal and vertical differentiation. We investigate the behavior of passengers, and assess how service pricing and...
Persistent link: https://www.econbiz.de/10012103986
We examine the impact of uncertainty on employment dynamics. Alternative measures of uncertainty are constructed based on the survey of professional forecasters, and regression-based forecasting models for GDP growth, inflation, S&P500 stock price index, and fuel prices. Our results indicate...
Persistent link: https://www.econbiz.de/10010428759