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
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: Suggested Citation