Project Help & Support: Call or WhatsApp (+91) 7550 227 228

Get Latest MBA/BBA Projects in your Email


Drivers of Finished-Goods Inventory in the U.S. Automobile Industry

Automobile manufacturers in the U.S. supply chain exhibit significant differences in their days of supply of finished vehicles (average inventory divided by average daily sales rate).

For example, from 1995 to 2004, Toyota consistently carried approximately 30 fewer days of supply than General Motors. This suggests that Toyota’s well-documented advantage in manufacturing efficiency, product design, and upstream supply chain management extends to their finished-goods inventory in their downstream supply chain from their assembly plants to their dealerships.

Our objective in this research is to measure for this industry the effect of several factors on inventory holdings. We find that two factors, the number of dealerships in a manufacturer’s distribution network and a manufacturer’s production flexibility, explain essentially all of the difference in finished-goods inventory between Toyota and three other manufacturers: Chrysler, Ford, and General Motors.
Source: University of Pennsylvania
Authors: Gérard P. Cachon | Marcelo Olivares

Download Project

>> More Projects on Inventory Management in Automobile Industry

For Free BBA/MBA Project Downloads:
Enter your email address:
( Its Free 100% )


Leave a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>