Operational safety: The hidden cost of supply-demand mismatch in fashion and textiles related manufacturers

Di Fan, Yi Zhou

    Research output: Journal article publicationJournal articleAcademic researchpeer-review

    14 Citations (Scopus)

    Abstract

    Inventory management is a focus for operations management scholars and operations managers. Previous literature mainly investigated the relations between firm's inventory and financial performance. However, the relation between firm's inventory and non-financial performance (e.g., social outcome) is less clear. This study takes a fresh perspective to examine the impacts of supply-demand mismatch on firm's safety performance. Based on a sample set from fashion and textiles related manufacturers, the analysis suggests that supply-demand mismatch (measured by inventory volatility) associates with a higher likelihood of safety incidents. The impact is more salient where the firms are operating in complex (labour intensive) and tightly coupled (high production capacity utilization) environments. This study provides significant contributions to the inventory management literature, occupational health and safety management literature and operational managers.

    Original languageEnglish
    Pages (from-to)70-78
    Number of pages9
    JournalInternational Journal of Production Economics
    Volume198
    DOIs
    Publication statusPublished - Apr 2018

    Keywords

    • Empirical study
    • Fashion and textiles
    • Inventory management
    • Occupational health and safety

    ASJC Scopus subject areas

    • Business, Management and Accounting(all)
    • Economics and Econometrics
    • Management Science and Operations Research
    • Industrial and Manufacturing Engineering

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