Non-convex costs and capital utilization: A study of production scheduling at automobile assembly plants ¬リニ
نویسنده
چکیده
I study detailed data from eleven automobile assembly plants. These data display considerable cross-plant heterogeneity in production scheduling. To explain the observed heterogeneity, I solve a dynamic programming model. When desired production is below the plant's minimum e$cient scale, non-convexities induce production bunching; the plant uses less than full capital utilization on average and production is more volatile than sales. When desired production is above the plant's minimum e$cient scale, the plant operates in a convex region of the cost curve. In this case, it uses high levels of capital utilization and production is less volatile than sales. ( 2000 Elsevier Science B.V. All rights reserved. JEL classixcation: E23; D21; L23
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