Publication Date
2018
Abstract
This study was motivated by Cooke’s 2013 article questioning the inclusion on inventory carrying costs in CSCMP’s Annual State of Logistics Report since it is based on interest rates. This paper explores that question more fully and goes on to look at trends in inventory efficiency based on inventory turnover for U.S. manufacturing firms. Results of the study reveal that there has been a level trend between 1980 and 2013 after firm size is controlled for. Since these results are contradictory to those obtained by looking at inventory carrying costs as a percent of GDP, they suggest the need for a measure which controls for interest rate to be included in the State of Logistics Report.
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