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Retailers, responding to a drop in demand for lens care products, have been reducing inventories.
Production increased an adjusted 0.6percentt from September, as companies met demand by reducing inventories.
The cost-cutting measures include reducing inventories and consolidating computer operations currently run by various divisions.
Food retailers have been reducing inventories, and General Mills expects sales volume to rise only slightly in the last three quarters of the year.
"We have to be very cautious in the use of cash by slowing down investments, reducing inventories and activities," Mr. Ghosn said.
In the process, the mechanism for restoring our economy to healthy growth -- by reducing inventories and excess capacity -- fails to function properly.
Similar(38)
Compaq officials said they were beginning to see the benefits of their success in reducing inventory, which soared after demand for PC's declined sharply late last year.
Demand from handset manufacturers is lower than usual in the run-up to year-end holidays, and distributors of National Semiconductor chips are reducing inventory, the company said.
So you may be closing warehouses, building large, sophisticated distribution centers and reducing inventory.
Suppliers and customers both save money by reducing inventory, cutting freight costs and taking advantage of scale economies.
According to Howard Lester Howard Lester, chief executive of Williams-Sonoma, the company was able to ride out the recession by reducing inventory levels, cutting costs and closing less productive stores.
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