Work detail

The Impact of Just-in-Time Inventory Management on Business Cycle Severity

Author: Bc. Karolína Chalupová
Year: 2018 - summer
Leaders: Jiří Novák M.Sc., Ph.D., Deloitte Corporate Chair
Consultants:
Work type: Bachelors
Language: English
Pages: 70
Awards and prizes: B.A. with distinction from the Director of IES FSV UK for an extraordinarily good bachelors diploma thesis.
Deloitte Outstanding Thesis Award
Link: https://is.cuni.cz/webapps/zzp/detail/201184/
Abstract: Abstract This thesis examines the impact of the just-in-time management (JIT) on volatility of inventory and the magnitude of inventory recessionary cuts. Firms’ inventory is an important macroeconomic variable – prior research shows that a decrease in inventory volatility is likely an important source of the Great Moderation and that inventory cuts are a crucial part of GDP decreases during recessions. My results show that JIT decreases volatility of inventory change and makes the recessionary inventory cuts milder. Combined with previous research, the results imply that likely, JIT is an important source of the Great Moderation and mitigates recessions. I test the hypotheses with quarterly 1975–2014 data on U.S. publically traded manufacturing firms, consisting of 116 JIT adopters and 116 matched control firms.

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