Order Backlogs and Production Smoothing

37 Pages Posted: 6 Apr 2007 Last revised: 10 Jul 2022

See all articles by Kenneth D. West

Kenneth D. West

University of Wisconsin - Madison - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: September 1987

Abstract

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.

Suggested Citation

West, Kenneth D., Order Backlogs and Production Smoothing (September 1987). NBER Working Paper No. w2385, Available at SSRN: https://ssrn.com/abstract=977421

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