Using the hand collected data of the top five
clients of manufacturing enterprises in China, this paper examines the effect
of customer geographic proximity on the inventory management level of
manufacturing enterprises. The results show that there is a positive relation
between the geographic proximity and inventory management level: the greater
the geography proximity of customers, the lower the proportion of inventory,
the higher the inventory turnover rate. This paper not only contributes to the
literature on the factors affecting the level of inventory management and the
supply chain management, but also provides reference on how the manufacturing
enterprises can maintain the relationship with customers better, and improve
inventory management efficiency.
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