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Impact of the Operations Manager's dual role on inventory policy

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  • Alfaro, José A.
  • Tribo Gine, José Antonio

Abstract

In modern corporations, the Operations Manager’s role in defining of firm’s strategy is becoming more important. In this paper we describe how firms can use this tendency for Operations Managers to make strategic decisions as a mechanism to prevent inventory mismanagement. These managers have incentives to speculate with inventory cost reductions, thereby avoiding sharp reductions in a single period, because it would hinder further reductions in the future. Remarkably, firms may prevent such behavior by stimulating the Operations Managers’ strategic orientation, without losing sight of inventory-efficient management.

Suggested Citation

  • Alfaro, José A. & Tribo Gine, José Antonio, 2007. "Impact of the Operations Manager's dual role on inventory policy," DEE - Working Papers. Business Economics. WB wb076612, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    • Handle: RePEc:cte:wbrepe:wb076612
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