Information inaccuracy in inventory systems: stock loss and stockout

@article{Kang2005InformationII,
  title={Information inaccuracy in inventory systems: stock loss and stockout},
  author={Yunyi Kang and S. Gershwin},
  journal={IIE Transactions},
  year={2005},
  volume={37},
  pages={843 - 859}
}
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… Expand
Inspection and Replenishment Policies for Systems with Inventory Record Inaccuracy
  • A. Kök, K. Shang
  • Computer Science, Engineering
  • Manuf. Serv. Oper. Manag.
  • 2007
TLDR
It is proved that an inspection adjusted base-stock (IABS) policy is optimal for the single-period problem and in the finite-horizon problem, and it is shown that CCABS is almost as effective as the IABS policy. Expand
Inventory record inaccuracy due to theft in production-inventory systems
TLDR
An analytical model is proposed to study the operational and economic impacts of inventory record inaccuracy stemming from theft-type error in a continuous-review lost sale lost sale inventory system. Expand
Inventory management in the presence of inventory inaccuracies: an economic analysis by discrete-event simulation
TLDR
The effect generated by inventory record inaccuracies on the economic performance of a warehouse of fast moving consumer goods is analysed and outcomes can support strategic decisions, such as the choice among different correction mechanisms and the opportunity to adopt them. Expand
Impact of Frequency of Alignment of Physical and Information System Inventories on Out of Stocks: A Simulation Study
TLDR
The results, verified under various scenarios, indicate that there is a significant reduction in stockout loss when the alignment is done monthly vs. annually, but it does not add much value beyond a monthly check. Expand
Managing with Incomplete Inventory Information
A critical assumption in the vast literature on inventory management has been that the current level of inventory is known to the decision maker. Some of the most celebrated results such as theExpand
Managing with Incomplete Inventory Information (i3)
TLDR
To review some recent developments in the analysis of inventory management problems with incomplete information, the analysis for finding optimal production or ordering policies takes place generally in the space of probability distributions. Expand
JOINT ORDERING AND INSPECTION POLICY FOR A MULTI-PERIOD INVENTORY SYSTEM SUBJECT TO SHRINKAGE ERRORS
One of the implicit assumptions considered in the majority of investigations performed in the area of inventory management is that the physical ∞ow of products that passes through an inventory systemExpand
Inventory record inaccuracy and store-level performance
TLDR
Evaluating the effects of IRI on retail store inventory and sales management performance uses real-life data of an international fashion retailer and proposes a novel network data envelopment analysis (NDEA) model, capable of setting store-level performance standards more accurately than state-of-the-art models. Expand
Retail Inventory Management When Records Are Inaccurate
TLDR
This paper considers an intelligent inventory management tool that accounts for record inaccuracy using a Bayesian belief of the physical inventory level, and shows that a probability distribution on physical inventory levels is a sufficient summary of past sales and replenishment observations and that this probability distribution can be efficiently updated as observations are accumulated. Expand
A Markov decision process model for inventory control under invisible stock loss and inaccurate record
TLDR
A Markov decision process (MDP) model is developed for an inventory control system with invisible stock loss, inaccurate record, and replenishment lead-time and it is found that the robust policy still has a reorder point/order-up-to level structure and can significantly reduce the impact of inventory inaccuracy. Expand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 44 REFERENCES
Inventory Systems with Imperfect Asset Information
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 andExpand
A Quality Control Approach for Monitoring Inventory Stock Levels
TLDR
A new approach to monitor the accuracy of an inventory management system based on the average absolute relative difference as a simple analytical measure for inventory accuracy (ACN) to capture the status of accuracy in an inventory. Expand
Execution: The Missing Link in Retail Operations
In spite of making substantial investments in information technology planning systems, retailers are struggling with two execution problems—" inventory record inaccuracy" and "misplaced stock keepingExpand
Measuring the effects of inventory inaccuracy in MRP inventory and delivery performance
The effectiveness of the definition of inventory accuracy primarily used by practitioners is investigated under both lot-for-lot and fixed-order-quantity policies. Frequency of error, the mostExpand
Estimating service level impacts from changes in cycle count, buffer stock, or corrective action
TLDR
Inventory managers need to be able to gain insights to the magnitude of improvements in protection levels against stockouts that can be gleaned from the three mechanisms available to them—more buffer stock, more physical inventories, or more corrective action to eliminate or reduce the causes for the errors arising in the first place. Expand
Kanban, MRP, and Shaping the Manufacturing Environment
TLDR
Results show that kanban, when implemented in certain environmental settings, does indeed perform exceptionally well, but so do the more traditional systems used in the United States, and suggest that the selection of a production/inventory system can be of less importance than the improvement of the manufacturing environment itself. Expand
Optimal Timing of Account Audits in Internal Control
This paper calculates the minimum required frequency between audits of a given type to meet prespecified accuracy goals for a given type of account. Both "100 percent," as well as sampling typeExpand
Optimum Stratified Cycle Counting
Abstract Cycle counting is a recently devised procedure for continuously updating inventory record accuracy as a replacement for an annual complete inventory count. Cycle counting has been shown toExpand
Minimum variance stratification
The equations for the solution of minimum variance stratification under Neyman allocation are not easily tractable and hence approximate solutions have been suggested by various workers. TheseExpand
Inventory accuracy
  • Inventory Management Reprints APICS, 221–223.
  • 1984
...
1
2
3
4
5
...