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Inventory Reduction and Productivity Growth: Evidence from the Japanese Automotive Sector

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dc.creator Lieberman, Marvin B.
dc.creator Demeester, Lieven
dc.date 2002-09-10T19:04:18Z
dc.date 2002-09-10T19:04:18Z
dc.date 2002-09-10T19:04:18Z
dc.date.accessioned 2013-05-31T19:09:42Z
dc.date.available 2013-05-31T19:09:42Z
dc.date.issued 2013-06-01
dc.identifier http://hdl.handle.net/1721.1/1643
dc.identifier.uri http://koha.mediu.edu.my:8181/jspui/handle/1721
dc.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.
dc.format 45598 bytes
dc.format application/pdf
dc.language en_US
dc.subject Inventory
dc.subject Productivity
dc.subject Just-In-Time Manufacturing
dc.subject Auto Industry
dc.subject Japan
dc.subject Empirical Study
dc.title Inventory Reduction and Productivity Growth: Evidence from the Japanese Automotive Sector

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