Order Backlogs and Production Smoothing

Kenneth D. West

NBER Working Paper No. 2385 (Also Reprint No. r1207)
Issued in June 1989
NBER Program(s):   EFG

Empirical examination of some aggregate manufacturing data suggests that order backlogs may help explain two puzzling facts: (1) the variability of production appears to be greater than that of demand, and (2) inventories appear to be drawn down when demand is low, built up when demand is high.

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Published: From The Economics of Inventory Management, edited by A. Chikan and M.C. Lovell, pp. 305-317. Amsterdam: Elsevier Science Publishers B.V. (North- Holland), 1988.

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