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Editor: Universidad Carlos III de Madrid. Departamento de Economía de la Empresa

Issued date: 2007-09

Serie-No.: UC3M Working papers. Business Economics07-12

Keywords: Operations Manager behavior , Compensation model , Inventory policy

Rights: Atribución-NoComercial-SinDerivadas 3.0 España

Abstract:In modern corporations, the Operations Manager’s role in defining of firm’s strategy isbecoming more important. In this paper we describe how firms can use this tendency forOperations Managers to make strategic decisions as a mechanism to prevent inventoryIn modern corporations, the Operations Manager’s role in defining of firm’s strategy isbecoming more important. In this paper we describe how firms can use this tendency forOperations Managers to make strategic decisions as a mechanism to prevent inventorymismanagement. These managers have incentives to speculate with inventory costreductions, thereby avoiding sharp reductions in a single period, because it would hinderfurther reductions in the future. Remarkably, firms may prevent such behavior by stimulatingthe Operations Managers’ strategic orientation, without losing sight of inventory-efficientmanagement.+-





Author: Alfaro, José A.; Tribó, Josep A.

Source: http://e-archivo.uc3m.es


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Universidad Carlos III de Madrid Repositorio institucional e-Archivo http:--e-archivo.uc3m.es Departamento de Economía de la Empresa DEE - Working Papers.
Business Economics.
WB 2007-09 Impact of the Operations Managers dual role on inventory policy Alfaro, José A. http:--hdl.handle.net-10016-957 Descargado de e-Archivo, repositorio institucional de la Universidad Carlos III de Madrid Working Paper 07-66 Business Economics Series 12 September 2007 Departamento de Economía de la Empresa Universidad Carlos III de Madrid Calle Madrid, 126 28903 Getafe (Spain) Fax (34) 91 624 9607 IMPACT OF THE OPERATIONS MANAGER’S DUAL ROLE ON INVENTORY POLICY * JOSÉ ALFARO 1 JOSEP A.
TRIBÓ 2 Abstract In modern corporations, the Operations Manager’s role in defining of firm’s strategy is becoming more important.
In this paper we describe how firms can use this tendency for Operations Managers to make strategic decisions as a mechanism to prevent inventory mismanagement.
These managers have incentives to speculate with inventory cost reductions, thereby avoiding sharp reductions in a single period, because it would hinder further reductions in the future.
Remarkably, firms may prevent such behavior by stimulating the Operations Managers’ strategic orientation, without losing sight of inventory-efficient management. Keywords: Operations Manager behavior, Compensation model, Inventory policy. 1 Business Department.
University of Navarra.
Campus Universitario 31080 Pamplona.
Spain. E-mail: jalfaro@unav.es 2 Business Department, Carlos III, C- Madrid 126 (Getafe), 28903.
E-mail: joatribo@emp.uc3m.es * The authors wish to thank María José Álvarez, María Gutiérrez as well as seminar participants at the Universidad Carlos III (Madrid, 2005) for their useful comments.
Financial support provided by the project of the Comunidad de Madrid (Grant # s-0505-tic-000230), from the MEC (grant # SEJ200609401) and from the Fundación Ramón Areces is gratefully acknowledeged....





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