Order Backlogs and Production Smoothing

Kenneth D. West

26 citations0/0 files storedLecture notes in economics and mathematical systems

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Monetary Policy and Economic Impact Supply Chain and Inventory Management Forecasting Techniques and Applications

Abstract

Empirical examination of some aggregate manufacturing data suggests that order backlogs may help explain two puzzling facts: (l)the variability of production appears to be greater than that of demand, arid(2)inventorjes appear to be drawn down when demand is low, built up when demand is high.

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References

1987Co-Integration and Error Correction: Representation, Estimation, and Testing 1986Inventories and the volatility of production 1983Dividend variability and variance bounds tests for the rationality of stock market prices 1988Asymptotic Normality, When Regressors Have a Unit Root 1986Can the Production Smoothing Model of Inventory Behavior be Saved?1961Manufacturers' Inventories, Sales Expectations, and the Acceleration Principle 1986A Variance Bounds Test of the Linear Quadratic Inventory Model 1988Seasonality, Cost Shocks, and the Production Smoothing Model of Inventories

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1990The Resurgence of Inventory Research: What Have We Learned?1993Still more on the speed of adjustment in inventory models: A lesson in aggregation

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