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http://dspace.mediu.edu.my:8181/xmlui/handle/1721.1/1643| Title: | Inventory Reduction and Productivity Growth: Evidence from the Japanese Automotive Sector |
| Keywords: | Inventory Productivity Just-In-Time Manufacturing Auto Industry Japan Empirical Study |
| Issue Date: | 1-Jun-2013 |
| Description: | The literature on JIT production suggests a causal link between work-in-process inventory and manufacturing productivity. Such a connection has been described in numerous case studies but never tested statistically. This paper uses historical data for 52 Japanese automotive companies to evaluate the inventory-productivity relationship. We find that inventory reductions stimulated gains in productivity, rather than vice versa. On average, each 10% reduction in inventory led to about a 1% gain in labor productivity, with a lag of about one year. Significant differences are found among company groups: Toyota affiliates had a shorter lag; while Nissan affiliates demonstrated no productivity effect. Firms that made inventory reductions typically saw an increase in their productivity rank. |
| URI: | http://koha.mediu.edu.my:8181/jspui/handle/1721 |
| Other Identifiers: | http://hdl.handle.net/1721.1/1643 |
| Appears in Collections: | MIT Items |
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