JOURNAL ARTICLE

Inventory Productivity and Stock Returns in Manufacturing Networks.

  • Published In: Manufacturing & Service Operations Management (M&SOM) (INFORMS), 2024, v. 26, n. 2. P. 573 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Agrawal, Deepak; Osadchiy, Nikolay 3 of 3

Abstract

This article examines inventory productivity among U.S. manufacturing firms through the lens of their position in the supply network, measured by upstreamness (layer), degree, and betweenness centrality. Using data from 2003 to 2019, the study finds that inventory productivity is significantly lower for firms located upstream and higher for those with greater network centrality. Financial markets reward high inventory productivity more strongly for upstream, low-degree, and peripheral firms, with abnormal returns and equity valuations notably amplified in these groups. The findings suggest that supply network position is a valuable predictor of both operational efficiency and financial performance, offering important implications for operations managers in benchmarking inventory and for investors seeking arbitrage opportunities.

Additional Information

  • Source:Manufacturing & Service Operations Management (M&SOM) (INFORMS). 2024/03, Vol. 26, Issue 2, p573
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2024
  • ISSN:1523-4614
  • DOI:10.1287/msom.2022.0229
  • Accession Number:176322779
  • Copyright Statement:Copyright of Manufacturing & Service Operations Management (M&SOM) (INFORMS) is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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