Deregulation of the trucking industry and significantly lowered transportation costs led to large, widespread, and plausibly exogenous reductions in inventory for U.S. firms, but with consequent increased supply chain disruption costs. We find evidence that increased supply chain disruption...

Ever since the basic Economic Order Quantity (EOQ) model was introduced, several researchers and academicians extended and/or altered it, to reduce its unrealistic assumptions and make it more suitable and appropriate to the real world. The traditional EOQ Models assume constant demand and...