Inventory inaccuracies in the wholesale supply chain
AbstractThe inventory level shown in the Information System contrary to popular belief and assumptions in most academic papers and in spite of the considerable amounts invested in information technology, is often inaccurate. The inventory inaccuracy occurs when the inventory shown in the Information System is not in agreement with the actually available inventory. In this paper, we first describe the major factors generating inventory inaccuracy. Then, we provide situations permitting to manage an inventory system subject to errors. We provide a general framework permitting to model the inventory inaccuracy issue. In particular, we link the inaccuracy issue with the well known random yield problem. The shown link permits us to derive the optimal ordering policy of an inventory framework where demand satisfaction is done based on the inventory records (which are subject to inaccuracies). We also propose an analysis permitting to show the added value of an advanced identification system such as the RFID technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Production Economics.
Volume (Year): 133 (2011)
Issue (Month): 1 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ijpe
Inventory inaccuracy General framework Random yield problem Wholesale context RFID technology;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Donald L. Iglehart & Richard C. Morey, 1972. "Inventory Systems with Imperfect Asset Information," Management Science, INFORMS, vol. 18(8), pages B388-B394, April.
- Sahin, Evren & Dallery, Yves, 2009. "Assessing the impact of inventory inaccuracies within a Newsvendor framework," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1108-1118, September.
- Xu, Jinpeng & Jiang, Wei & Feng, Gengzhong & Tian, Jun, 2012. "Comparing improvement strategies for inventory inaccuracy in a two-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 221(1), pages 213-221.
- Zhou, Wei & Piramuthu, Selwyn, 2012. "Manufacturing with item-level RFID information: From macro to micro quality control," International Journal of Production Economics, Elsevier, vol. 135(2), pages 929-938.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.