A Study of Trends in Wholesaler Inventory Performance: 1981--2012

This study examines trends in inventory efficiency of wholesalers as measuredby inventory turnover. The primary research question is whether inventory efficiency has increased concurrently with the increased focus of managementon logistics and supply chain management that began in the late 1970s and early 1980s. Using 30 years of panel data from publicly traded retailers and a fixedeffects econometric model, this research reveals that most increases in inventory turnover can be explained by the presence of economies of scale and/or scopethat have been exploited by an increase in average firm size.