Inventory Flow in Canadian Candy Bar Supply Chains
Armstrong, Michael J.
MetadataShow full item record
This study examined the ages of candy bars to measure the inventory flow in their supply chains. It sampled 6888 candy bars at 8 retail chains made by 4 manufacturers over a 4 year period. The first objective of the study was exploratory: were there any significant differences in inventory turnover across retailers, manufacturers, or time periods? The second objective was explanatory: could those differences be explained by business events, factory location, market share, or pricing? The analysis showed that there were substantial differences in inventory turnover, especially among the retailers. Unlike in previous research, these differences seemed independent of the particular retail sector. The analysis also found that significant changes in inventory ages coincided with major events at one manufacturer. Interestingly, locating factories close to their markets did not necessarily lead to faster flows. These findings have implications for firms operating in the increasingly integrated North American marketplace.