The new role of inventories in business: Real world changes and research consequences

This paper is an attempt to formulate a new paradigm for inventory research, based on recent developments in business and the global economy. I begin with an analysis of the traditional paradigm as developed in the 1950s and its relationship to the economic and business environment of the time. Then, changes in this environment which have led to the characteristics of today's economy and business are described. Considering these characteristics, I derive a new inventory research paradigm. Several research areas-some leading to new directions-are identified on the basis of the new paradigm.