Demand uncertainty, inventory, and cost structure

Building on Banker, Byzalov, and Plehn-Dujowich's (2014, The Accounting Review, 89(3), 839–865) congestion cost theory, we model firms' trade-off between a rigid cost structure and a high inventory level to reduce the congestion costs caused by uncertain demand. We demonstrate that firms w...

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Bibliographic Details
Main Authors: Chang, Xin, Kwok, Wing Chun, Wong, George
Other Authors: Nanyang Business School
Format: Journal Article
Language:English
Published: 2024
Subjects:
Online Access:https://hdl.handle.net/10356/178349