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Inventory improvement and financial performance

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  • Cannon, Alan R.
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    Abstract

    This research reviews two contrasting views on the robustness of inventory improvement as an indicator of overall financial performance. These conceptual explorations lead to the testing of two hypotheses linking improved inventory performance with improved overall financial performance. Results indicate little or no relationship between inventory performance and overall financial performance.

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    File URL: http://www.sciencedirect.com/science/article/B6VF8-4T2S8PD-4/2/13fa73a463cf0e0c6e5f27ca57ed6451
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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 115 (2008)
    Issue (Month): 2 (October)
    Pages: 581-593

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    Handle: RePEc:eee:proeco:v:115:y:2008:i:2:p:581-593

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Inventory Process improvement Process choice Performance measurement;

    References

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    3. Karel O. Cool & Dan Schendel, 1987. "Strategic Group Formation and Performance: The Case of the U.S. Pharmaceutical Industry, 1963--1982," Management Science, INFORMS, vol. 33(9), pages 1102-1124, September.
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    6. Marvin B. Lieberman & Lieven Demeester, 1999. "Inventory Reduction and Productivity Growth: Linkages in the Japanese Automotive Industry," Management Science, INFORMS, vol. 45(4), pages 466-485, April.
    7. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
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    9. Hong Chen & Murray Z. Frank & Owen Q. Wu, 2005. "What Actually Happened to the Inventories of American Companies Between 1981 and 2000?," Management Science, INFORMS, vol. 51(7), pages 1015-1031, July.
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    12. Corbey, Michael & Jansen, Rutger, 1993. "The economic lot size and relevant costs," International Journal of Production Economics, Elsevier, vol. 30(1), pages 519-530, July.
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    15. Ghalayini, Alaa M. & Noble, James S. & Crowe, Thomas J., 1997. "An integrated dynamic performance measurement system for improving manufacturing competitiveness," International Journal of Production Economics, Elsevier, vol. 48(3), pages 207-225, February.
    16. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June.
    17. Fisher, Franklin M & McGowan, John J, 1983. "On the Misuse of Accounting Rates of Return to Infer Monopoly Profits," American Economic Review, American Economic Association, vol. 73(1), pages 82-97, March.
    18. Lea, Bih-Ru & Fredendall, Lawrence D., 2002. "The impact of management accounting, product structure, product mix algorithm, and planning horizon on manufacturing performance," International Journal of Production Economics, Elsevier, vol. 79(3), pages 279-299, October.
    19. McArthur, Angeline W. & Nystrom, Paul C., 1991. "Environmental dynamism, complexity, and munificence as moderators of strategy-performance relationships," Journal of Business Research, Elsevier, vol. 23(4), pages 349-361, December.
    20. Gunasekaran, A. & Patel, C. & McGaughey, Ronald E., 2004. "A framework for supply chain performance measurement," International Journal of Production Economics, Elsevier, vol. 87(3), pages 333-347, February.
    21. Vishal Gaur & Marshall L. Fisher & Ananth Raman, 2005. "An Econometric Analysis of Inventory Turnover Performance in Retail Services," Management Science, INFORMS, vol. 51(2), pages 181-194, February.
    22. Sadao Sakakibara & Barbara B. Flynn & Roger G. Schroeder & William T. Morris, 1997. "The Impact of Just-in-Time Manufacturing and Its Infrastructure on Manufacturing Performance," Management Science, INFORMS, vol. 43(9), pages 1246-1257, September.
    23. Demeter, Krisztina, 2003. "Manufacturing strategy and competitiveness," International Journal of Production Economics, Elsevier, vol. 81(1), pages 2015-213, January.
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    25. Thomas, Douglas J. & Griffin, Paul M., 1996. "Coordinated supply chain management," European Journal of Operational Research, Elsevier, vol. 94(1), pages 1-15, October.
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    Citations

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    Cited by:
    1. Elsayed, Khaled & Wahba, Hayam, 2013. "Reinvestigating the relationship between ownership structure and inventory management: A corporate governanceperspective," International Journal of Production Economics, Elsevier, vol. 143(1), pages 207-218.
    2. Kolias, Georgios D. & Dimelis, Sophia P. & Filios, Vasilios P., 2011. "An empirical analysis of inventory turnover behaviour in Greek retail sector: 2000-2005," International Journal of Production Economics, Elsevier, vol. 133(1), pages 143-153, September.
    3. Robb, David J. & Liu, Fei & Lai, Richard & Ren, Z. Justin, 2012. "Inventory in mainland China: Historical, industry, and geographic perspectives," International Journal of Production Economics, Elsevier, vol. 135(1), pages 440-450.
    4. de Vries, Jan, 2013. "The influence of power and interest on designing inventory management systems," International Journal of Production Economics, Elsevier, vol. 143(2), pages 233-241.

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