As most of these JIT studies are based on quite small sample sizes in the automotive industry in most cases,
subsequent studies tried to broaden the industry scope and increase sample sizes. Although this third stream of
inventory research is concerned with the relationship between inventory and firm performance, the variables are
measured indirectly, based on survey data rather than financial metrics. Demeter (2003) notes that the existence of a
clear manufacturing strategy should be associated with higher ROS, but finds no difference between firms with a
clear manufacturing strategy and those without in regard to inventory turnover. Fullerton et al. (2003) detect a
significant positive effect of lower inventory levels on ROA and ROS in their survey, whereas Vastag and Whybark
(2005) find no significant overall relationship between inventory turnover and firm performance. Demeter and
Matyusz (2011), however, show that firms applying lean practices have a higher inventory turnover than those that
do not rely on lean techniques.
As most of these JIT studies are based on quite small sample sizes in the automotive industry in most cases,subsequent studies tried to broaden the industry scope and increase sample sizes. Although this third stream ofinventory research is concerned with the relationship between inventory and firm performance, the variables aremeasured indirectly, based on survey data rather than financial metrics. Demeter (2003) notes that the existence of aclear manufacturing strategy should be associated with higher ROS, but finds no difference between firms with aclear manufacturing strategy and those without in regard to inventory turnover. Fullerton et al. (2003) detect asignificant positive effect of lower inventory levels on ROA and ROS in their survey, whereas Vastag and Whybark(2005) find no significant overall relationship between inventory turnover and firm performance. Demeter andMatyusz (2011), however, show that firms applying lean practices have a higher inventory turnover than those thatdo not rely on lean techniques.
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