Business Cycles and Productivity in Capital Equipment Supply Chains

  • Edward G. AndersonJr.
  • Charles H. Fine
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 17)


Cyclicality is a commonly observed phenomenon in market economies. Less well understood, however, is the amplification of cyclicality as one progresses up the supply chain from original equipment manufacturer (OEM) to first-, second-, and third-tier suppliers. Recent studies have focused on management techniques to minimize inventory costs when faced with amplification in product distribution chains (Baganha and Cohen 1996; Lee, Padmanabhan, and Whang 1997; Sterman 1989a).2 This paper instead examines long-term supplier productivity as influenced by amplification in capital goods supply chains.


Supply Chain Machine Tool Mean Absolute Percent Error Product Demand Capital Equipment 
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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Edward G. AndersonJr.
    • 1
    • 2
  • Charles H. Fine
    • 1
    • 2
  1. 1.Department of ManagementUniversity of TexasAustinUSA
  2. 2.Sloan School of ManagementMassachusetts Institute of TechnologyCambridgeUSA

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