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Production and Inventory Control at the General Motors Corporation during the 1920's and 1930's

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  • Kashyap, Anil K
  • Wilcox, David W

Abstract

This paper analyzes dynamics of production and inventories at the General Motors Corporation during the 1920s and 1930s. The authors begin by examining anecdotal evidence on the nature of the production control system in force during that period. Motivated by that evidence, they then extend the conventional linear-quadratic model of production behavior to take account of annual shutdown. Finally, the authors apply the modified model to newly available data on monthly unit production, sales, and inventories during 1924-40. General Motors appears to have been aiming to maintain a targeted level of inventory relative to expected sales and, secondarily, to smooth production. Copyright 1993 by American Economic Association.

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 83 (1993)
Issue (Month): 3 (June)
Pages: 383-401
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Handle: RePEc:aea:aecrev:v:83:y:1993:i:3:p:383-401

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  1. Henry Ford, Innovation, and That "Faster Horse" Quote
    by Patrick Vlaskovits in HBR Blog Network on 2011-08-29 16:52:31
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Cited by:
  1. George J. Hall, 1996. "Non-convex costs and capital utilization: a study of production and inventories at automobile assembly plants," Working Paper Series, Macroeconomic Issues WP-96-25, Federal Reserve Bank of Chicago.

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