CEU Electronic Theses and Dissertations, 2010
| Author | Csabafi, Tamas Zoltan |
|---|---|
| Title | An Empirical Study of the Tea Industry: Inventory Movements and Demand |
| Summary | In this thesis I am taking a closer at inventory movements in the tea industry. First, thesis introduces a benchmark inventory model by Bils and Kahn (2000). There are two issues appearing that the thesis aims at taking a closer look. One is that inventories are proportional to sales. Two, there is a short-run trade-off between inventory investment and sales. For the empirical evaluation two approaches are presented. First, a framework based on Choi and Kim (2001), which allows to look at the relationship of sales and inventory movements in a static and dynamic setting. Second, the study introduces a simple model following Bils and Kahn (2000), which allow estimating the demand for sales depending on inventory levels. The results are mixed. Based on both empirical frameworks there is a positive relationship between sales and inventory stocks, however, not all of the regressions confirmed a proportional relationship. With regards to the trade-off between inventory investment and sales the study finds that there is a reverse relationship between sales and inventory investments through estimating the coefficient of the inventory-to-sales ratio in a dynamic setting. Finally, it must be noted that the limitations and technical obstacles are discussed where they arose be it technical or related to the data. |
| Supervisor | Ratfai, Attila |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2010/csabafi_tamas.pdf |
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