Article ID: | iaor20121534 |
Volume: | 136 |
Issue: | 1 |
Start Page Number: | 45 |
End Page Number: | 55 |
Publication Date: | Mar 2012 |
Journal: | International Journal of Production Economics |
Authors: | Sharda Ramesh, Agrawal Paras M |
Keywords: | supply & supply chains, simulation, inventory, demand, stochastic processes |
Inaccuracy in the information system inventory as compared to the physical inventory may lead to out of stocks. Inaccuracy may occur for many reasons, a principal one being random losses such as theft. One way to reduce this inaccuracy is to adjust the inventory information in the systems at some regular frequency. Such alignments are quite expensive in practice. Thus how often to align the two inventories is the focus of this research. A simulation model is employed to investigate the effect of such loss defined by the stock loss parameter (