IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v18y1972i8pb388-b394.html

Inventory Systems with Imperfect Asset Information

Author

Listed:
  • Donald L. Iglehart

    (Stanford University)

  • Richard C. Morey

    (Control Analysis Corporation, Palo Alto. Work done while the author was affiliated with DECISION Studies Group, Palo Alto, California)

Abstract

An inventory stock record is in error when the stock record is not in agreement with the physical stock. Such discrepancies may be introduced due to time lags between flow of information and material, pilferage, incorrect unit of issue, inaccurate physical inventory counts, etc. The primary impact of these errors is that the system fails to order when it should, resulting in "warehouse denials," i.e., the stock records show a balance sufficient to issue a given material release order, but for which insufficient units of stock can physically be found. The object of this paper is to select the proper frequency and depth of inventory counts, together with modifications to a given stocking policy, so as to minimize the total cost per unit time, subject to the likelihood of a warehouse denial between inventory counts being below a prescribed level. The goal has been to obtain results easily implementable and leads to formulae comparable to those of the classical economic lot-size models. A numerical example is included to illustrate the procedure.

Suggested Citation

  • Donald L. Iglehart & Richard C. Morey, 1972. "Inventory Systems with Imperfect Asset Information," Management Science, INFORMS, vol. 18(8), pages 388-394, April.
    • Handle: RePEc:inm:ormnsc:v:18:y:1972:i:8:p:b388-b394
    DOI: 10.1287/mnsc.18.8.B388
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.18.8.B388
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.18.8.B388?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:18:y:1972:i:8:p:b388-b394. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.