Business environments change over time. They are cyclic, show seasonality or just evolve over time. This is certainly true for customer demand. As a result, stationary demand distributions are crude approximations of true customer behavior at best. Yet, most classical stochastic inventory models...

This paper identifies total factor productivity (TFP) news shocks using standard VAR methodology and documents a new stylized fact: in response to news about future increases in TFP, inventories rise and comove positively with other major macroeconomic aggregates. The authors show that the...

For decades, production has relied on the old principle mass production invented by Henry Ford where parts are being produced in batches and pushed to the market hoping for a customer to buy. Things are based on forecasting and sales were too optimistic. This system disconnects the factory from...