Inventory record inaccuracy in supply chains: the role of workers' behavior

2014

Purpose – The purpose of this paper is to explore the effect of inventory record inaccuracy due to behavioral aspects of workers on the order and inventory variance amplification. Design/methodology/approach – The authors adopt a continuous-time analytical approach to describe the effect of inbound throughput on the inventory and order variance amplification due to the workload pressure and arousal of workers. The model is numerically solved through simulation and results are analyzed with statistical general linear model. Findings – Inventory management policies that usually dampen variance amplification are not effective when inaccuracy is generated due to workers’ behavioral aspects. Sp…