Demand uncertainty, inventory, and cost structure

• Main Authors: Chang, Xin, Kwok, Wing Chun, Wong, George
• 其他作者: Nanyang Business School
• 格式: Article
• 語言: English
• 出版: 2024
• 主題: Business and Management; Congestion costs; Cost structure
• 在線閱讀: https://hdl.handle.net/10356/178349

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...