In this paper, we extend the conventional (S, s) model by incorporating a production process. This extension allows us to analyze not only retailers' but also manufacturers' inventories. Simulation exercises show that our model can generate stylized facts about inventory behaviors. We use the inventory model to estimate firm‐level inventory dynamics in Korea. The estimation results suggest that the predictions implied by our inventory model are largely consistent with the data. The expected demand for finished goods turns out to be the most important factor contributing to inventory variations at the individual firm level. At the aggregate level, however, heterogeneity across firms also matters.

中文翻译：

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韩国企业一级的库存动态：生产增加的（S，s）库存模型*

在本文中，我们通过合并生产过程扩展了常规（S，s）模型。此扩展使我们不仅可以分析零售商的库存，还可以分析制造商的库存。仿真练习表明，我们的模型可以生成有关库存行为的程式化事实。我们使用库存模型来估算韩国公司级别的库存动态。估计结果表明，我们的库存模型所隐含的预测与数据基本一致。最终成品的预期需求是导致单个公司级别的库存变化的最重要因素。但是，从总体上看，公司之间的异质性也很重要。