A major organizational design decision for manufacturing firms is t he extent to which production should be to stock versus to order: inventories and communication with customers are substitutes. The authors show that profits are convex in the share of the market supplied from inventory. Thus, firms will tend to specialize in one mode of organization. The authors examine how this choice depends on market size, the level and variability of demand, the costs of communication, price levels, production costs, and the costs of expanding product lines. The results are consistent with observed patterns in several industries. Copyright 1988 by The editors of the Scandinavian Journal of Economics.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Bijman, W.J.J. & Hendrikse, G.W.J. & Veerman, C.P., 2000.
"A marketing co-operative as a system of attributes,"
Research Paper
ERS-2000-10-ORG Revision_, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
[Downloadable!]