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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Main Authors: | , , |
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Other Authors: | |
Format: | Article |
Language: | English |
Published: |
2024
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Subjects: | |
Online Access: | https://hdl.handle.net/10356/178349 |
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Institution: | Nanyang Technological University |
Language: | English |