Operations Manager Turnover and Inventory Fluctuations

Alfaro, J. & Tribó, J. (2003) "Operations Manager Turnover and Inventory Fluctuations". International Journal of Production Economics, 81-82, pp. 51-58.

8 Pages Posted: 28 Aug 2014

See all articles by Jose Alfaro

Jose Alfaro

University of Navarra

Josep A. Tribo

Stevens Institute of Technology

Date Written: August 27, 2014

Abstract

We argue that a recently appointed operations manager deploys a higher variability inventory policy than a high-tenure operations manager does. This contention is supported by the idea that the former manager determines the production schedule by focusing on the current-period demand for information, while the latter also incorporates her expectations over future demand shocks. A second theoretical outcome of this study is that the variability of inventory and of the number of firm’s employees are positively correlated, especially in firms with a recently appointed operational manager. Such managers use cojointly inventory and temporary workers to buffer demand shocks more often than high-tenure managers. Empirical support for these propositions was gathered from two databases of Spanish manufacturing firms.

Keywords: Inventory Fluctuations, Operations Manager Turnover.

JEL Classification: M54

Suggested Citation

Alfaro, Jose and Tribo Gine, Josep Antonio, Operations Manager Turnover and Inventory Fluctuations (August 27, 2014). Alfaro, J. & Tribó, J. (2003) "Operations Manager Turnover and Inventory Fluctuations". International Journal of Production Economics, 81-82, pp. 51-58., Available at SSRN: https://ssrn.com/abstract=2487954

Jose Alfaro

University of Navarra ( email )

Camino del Cerro del Aguila, 3
Pamplona, Navarra 31080
Spain

Josep Antonio Tribo Gine (Contact Author)

Stevens Institute of Technology ( email )

Hoboken, NJ 07030
United States
9292708869 (Phone)
07030 (Fax)

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