Inventory Signals

How does operational competence translate into market value, when firms cannot credibly communicate their competence to the market? I consider the example of inventory and fill rates. When the market sees a high-inventory firm, it cannot tell whether the inventory is due to incompetence or a strategy to enhance fill rate. Firms might decide to signal their competence to the market by carrying less inventory. I show conditions for separating and pooling perfect Bayesian equilibria. I also provide empirical evidence for this theory that inventory has a signaling role. The theory could potentially provide a framework that describes one way in which a range of operational competences such as purchasing and outsourcing, translate to market value. Practically, it has implications for firms, such as how to strategically communicate to the market, reward managers, or even whether to go public and be subject to market pressures

Towards energy and resource efficient manufacturing: A processes and systems approach

This paper aims to provide a systematic overview of the state of the art in energy and resource efficiency increasing methods and techniques in the domain of discrete part manufacturing, with attention for the effectiveness of the available options. For this purpose a structured approach, distinguishing different system scale levels, is applied: starting from a unit process focus, respectively the multi-machine, factory, multi-facility and supply chain levels are covered. Determined by the research contributions reported in literature, the de facto focus of the paper is mainly on energy related aspects of manufacturing. Significant opportunities for systematic efficiency improving measures are identified and summarized in this area.CIRP EREE Keynotestatus: publishe