6533b829fe1ef96bd128992d
RESEARCH PRODUCT
The effect of inventory record inaccuracy in information exchange supply chains
Ana Paula Barbosa-póvoaJose M. FraminanManfredi BruccoleriSalvatore CannellaSalvatore CannellaSusana Relvassubject
Information sharingSupply chain managementBullwhip effectInformation Systems and ManagementGeneral Computer ScienceOperations researchInformation sharingSupply chainService managementSystem dynamicSystem dynamicsManagement Science and Operations ResearchSettore ING-IND/35 - Ingegneria Economico-GestionaleCollaborationIndustrial and Manufacturing EngineeringSystem dynamicsBullwhip effectModeling and SimulationEconomicsInventory theoryBullwhip effect; Collaboration; Information sharing; Supply chain management; System dynamics; Management Science and Operations Research; Modeling and Simulation; Information Systems and ManagementOperations managementSupply chain managementInformation exchangedescription
Abstract The goal of this paper is to quantify the impact of Inventory Record Inaccuracy on the dynamics of collaborative supply chains, both in terms of operational performance (i.e. order and inventory stability), and customer service level. To do so, we model an Information Exchange Supply Chain under shrinkage errors in the inventory item recording activity of their nodes, present the mathematical formulation of such supply chain model, and conduct a numerical simulation assuming different levels of errors. Results clearly show that Inventory Record Inaccuracy strongly compromises supply chain stability, particularly when moving upwards in the supply chain. Important managerial insights can be extracted from this analysis, such as the role of ‘benefit-sharing’ strategies in order to guarantee the advantage of investments in connectivity technologies.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2015-05-01 |