Managers’ view of a new inventory paradigm

The significance of inventories in business operations have never been denied. The actual role of inventories, however, is changing over time, as required by the business environment. This paper provides empirical background to the thesis, which says that the role of inventories in the ‘Golden Era’ of inventory research, which was in the 1950s, was significantly different from that of today because of fundamental changes in business. This development requires new approaches in research as well. After a summary of the antecedents, the results of a survey are analysed, and they support the above thesis. The lack of difference between the inventory performance measured by the turnover rate of those companies, whose managers accept and those who deny the birth of the new paradigm calls attention to the need for the elaboration of a more complex inventory performance measurement.