| Author: | Lieberman, M. B. |
| Title: | Capacity utilization : Theoretical models and empirical tests. |
| Journal: | European Journal of Operational Research
1989 : MAY 25, VOL. 40:2, p. 155-168 |
| Index terms: | CAPACITY UTILIZATION MODELS MANUFACTURING INDUSTRY INVESTMENTS |
| Language: | eng |
| Abstract: | The determinants of industry capacity utilization in 40 chemical product industries are examined over a period of roughly two decades. A series of testable hypotheses are developed based on the Manne model, the Newsboy model and Whitt-Luss model. The hypotheses are tested on the sample using multiple regression analysis. The empirical results are consistent with most predictions derived from the Newsboy and Whitt-Luss models, which suggest that firms made expansion decisions in a manner roughly in accordance with these models. Capacity utilization was positively related to capital intensity and the trend rate of demand growth, and was negatively related to demand variability, geographic plant dispersion, and plant "lumpiness". |
SCIMA