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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Order Backlogs and Production Smoothing
1989, National Bureau of Economic Research
electronic resource
in English
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June 1989.
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