Information inaccuracy in inventory systems: stock loss and stockout
Information inaccuracy in inventory systems: stock loss and stockout
复制标题
DOI:
10.1080/07408170590969861
复制
发表时间:
2005-09
期刊:
影响因子:
--
通讯作者:
Yunyi Kang;S. Gershwin
中科院分区:
文献类型:
--
作者:
Yunyi Kang;S. Gershwin
Many companies have automated their inventory management processes and now rely on information systems when making critical decisions. However, if the information is inaccurate, the ability of the system to provide a high availability of products at the minimal operating cost can be compromised. In this paper, analytical and simulation modelling demonstrate that even a small rate of stock loss undetected by the information system can lead to inventory inaccuracy that disrupts the replenishment process and creates severe out-of-stock situations. In fact, revenue losses due to out-of-stock situations can far outweigh the stock losses themselves. This sensitivity of the performance to the inventory inaccuracy becomes even greater in systems operating in lean environments. Motivated by an automatic product identification technology under development at the Auto-ID Center at MIT, various methods of compensating for the inventory inaccuracy are presented and evaluated. Comparisons of the methods reveal that the inventory inaccuracy problem can be effectively treated even without automatic product identification technologies in some situations.