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Inventory Reduction and Productivity Growth: A Comparison of Japanese and US Automotive Sectors
Author(s) -
Lieberman Marvin B.,
Asaba Shigeru
Publication year - 1997
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/(sici)1099-1468(199703)18:2<73::aid-mde811>3.0.co;2-h
Subject(s) - automotive industry , productivity , industrial organization , business , operations management , economics , agricultural economics , engineering , economic growth , aerospace engineering
This study assesses the inventory and productivity performance of the Japanese and US automotive industries in recent decades. Within each country we distinguish between vehicle assemblers and parts suppliers. In Japan, assemblers and suppliers made dramatic inventory reductions and productivity gains, particularly during the 1970s. By comparison, we find an unbalanced pattern for the United States: American assembly plants have been streamlined, but parts suppliers have stagnated. In both countries our findings suggest a strong association between inventory reduction and productivity growth © 1997 John Wiley & Sons, Ltd.