Economic evaluation of systems that expedite inventory information

Economic evaluation of systems that expedite inventory information

0.00 Avg rating0 Votes
Article ID: iaor20082149
Country: United States
Volume: 16
Issue: 3
Start Page Number: 360
End Page Number: 368
Publication Date: Jan 2007
Journal: Production and Operations Management
Authors: , ,
Keywords: information
Abstract:

Information delays exist when the most recent inventory information available to the Inventory Manager (IM) is dated. Such situations arise when it takes a while to process the demand data, count the inventory, and pass the results to the IM. We show that the optimal total inventory-related cost decreases when the length of the information delay decreases. The amount of the decrease is an important datum for an IM interested in considering whether or not to invest in reducing the delay. The investment is required to finance design and acquisition of an information (collection and dissemination) system that can reduce the information delay. Such systems include phone calls, business meetings, and the use of information collection mechanisms such as radiofrequency identification tags.

Reviews

Required fields are marked *. Your email address will not be published.