journal article
LitStream Collection
Regional Variations in Manufacturing Inventory Levels
1991 International Journal of Physical Distribution & Logistics Management
The extent to which the ratio of inventory to value added formanufacturing industry varies between regions in the UK is examined. Ananalysis of regionally disaggregated inventory data obtained from theBritish Census of Production reveals wide regional variations in thisratio, with the three most peripheral regions being significantlyoverstocked relative to the national average. Stock levels in one ofthese regions, Scotland, are examined in detail in an effort to identifypossible causes of the overstocking. Industrial structure and length ofsupply line appear not to be important factors. As much of the excessinventory is in the workinprogress category, the overstocking islargely intrinsic to the production operation.