Inventory Inaccuracy and Supply Chain Performance: A Simulation Study of a Retail Supply Chain
Journal
International Journal of Production Economics
ISSN
0925-5273
ISSN-Digital
1873-7579
Type
journal article
Date Issued
2005-03-18
Author(s)
Abstract (De)
Inventory inaccuracy is a main issue in businesses dealing with physical assets. The aim of this paper is to examine the relationship between inventory inaccuracy and performance in a retail supply chain. We simulate a three echelon supply chain with one product in which end-customer demand is exchanged between the echelons. In the base model, without alignment of physical inventory and information system inventory, inventory information becomes inaccurate due to low process quality, theft, and items becoming unsaleable. In a modified model, these factors that cause inventory inaccuracy are still present, but physical inventory and information system inventory are aligned at the end of each period. The results indicate that an elimination of inventory inaccuracy can reduce supply chain costs as well as the out-of-stock level. Automatic identification technology that is becoming available offers the potential to achieve inventory accuracy.
Language
German
Keywords
Inventory inaccuracy
Retailing
Automatic identification
Simulation
Supply chain performance
HSG Classification
not classified
Refereed
No
Publisher
Elsevier
Publisher place
New York
Volume
95
Number
3
Start page
373
End page
385
Pages
13
Subject(s)
Division(s)
Eprints ID
21602