Production and inventory control at the General Motors Corporation during the 1920s and 1930s
AbstractThis 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 InfoPaper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 135.
Date of creation: 1990
Date of revision:
Other versions of this item:
- Kashyap, Anil K & Wilcox, David W, 1993. "Production and Inventory Control at the General Motors Corporation during the 1920's and 1930's," American Economic Review, American Economic Association, vol. 83(3), pages 383-401, June.
- Anil K. Kashyap & David W. Wilcox, 1992. "Production and inventory control at the General Motors Corporation during the 1920s and 1930s," Working Paper Series, Macroeconomic Issues 92-10, Federal Reserve Bank of Chicago.
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Henry Ford, Innovation, and That "Faster Horse" Quote
by Patrick Vlaskovits in HBR Blog Network on 2011-08-29 16:52:31
- Yang, Xiaolou, 2011. "Trade credit versus bank credit: Evidence from corporate inventory financing," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(4), pages 419-434.
- Robert Kollmann, 1997.
"The cyclical behavior of market ups in U.S. manufacturing and trade: new empirical evidence based on a model of optimal storage,"
ULB Institutional Repository
2013/7636, ULB -- Universite Libre de Bruxelles.
- Kollmann, Robert, 1997. "The cyclical behavior of mark ups in U.S. manufacturing and trade: new empirical evidence based on a model of optimal storage," Economics Letters, Elsevier, vol. 57(3), pages 331-337, December.
- Jeffrey Fuhrer & George Moore & Scott Schuh, 1993.
"Estimating the linear-quadratic inventory model: maximum likelihood versus generalized method of moments,"
Finance and Economics Discussion Series
93-11, Board of Governors of the Federal Reserve System (U.S.).
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- Liu, Wen-Hsien & Chung, Ching-Fan & Chang, Kuang-Liang, 2013. "Inventory change, capacity utilization and the semiconductor industry cycle," Economic Modelling, Elsevier, vol. 31(C), pages 119-127.
- George J. Hall, 1997.
"Non-Convex Costs and Capital Utilization: A Study of Production Scheduling at Automobile Assembly Plants,"
Cowles Foundation Discussion Papers
1169, Cowles Foundation for Research in Economics, Yale University.
- Hall, George J., 2000. "Non-convex costs and capital utilization: A study of production scheduling at automobile assembly plants," Journal of Monetary Economics, Elsevier, vol. 45(3), pages 681-716, June.
- Barber, Brad M. & Click, Reid W. & Darrough, Masako N., 1999. "The impact of shocks to exchange rates and oil prices on U.S. sales of American and Japanese automakers," Japan and the World Economy, Elsevier, vol. 11(1), pages 57-93, January.
- Mollick, Andre Varella, 2004. "Production smoothing in the Japanese vehicle industry," International Journal of Production Economics, Elsevier, vol. 91(1), pages 63-74, September.
- 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.
- Hamilton, James D., 2002. "On the interpretation of cointegration in the linear-quadratic inventory model," Journal of Economic Dynamics and Control, Elsevier, vol. 26(12), pages 2037-2049, October.
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