Econometrica: Apr 1957, Volume 25, Issue 2
The Theory of Inventory Decisions
https://doi.org/0012-9682(195704)25:2<222:TTOID>2.0.CO;2-T
p.
222-238
Edwin S. Mills
This article is an attempt to determine whether firms can be assumed to behave as if they were using a rational inventory policy. A decision rule is deduced from a plausible model of a firm's cost structure and an attempt is made to see whether historical time series of firms' production, sales, and inventory data can be explained by such a decision rule.Log In To View Full Content