Authors: Yacine Rekik, Zied Jemai
Addresses: EM Lyon Business School, 23 Avenue Guy de Collongue, 69134 Ecully, France. ' Laboratoire Genie Industriel, Ecole Centrale Paris, Grande voies des vignes, 92295 Chatenay Malabry, France
Abstract: Various execution errors and factors can create a difference between the expected and the effective physical and information flows within an inventory system. We consider a finite horizon, single-stage, single-product periodic-review inventory in which inventory records are inaccurate. We assume that inventory inaccuracies are introduced by shrinkage type errors that occur within the store. We propose three ways permitting to manage the inventory system based on the information we have on shrinkage errors. The comparison between the three approaches permits us to analyse the impact of shrinkage errors and the value of the Radio Frequency Identification (RFID) technology on the inventory system.
Keywords: periodic review inventory; inventory record inaccuracy; shrinkage errors; RFID; radio frequency identification; dynamic programming; electronic business; e-business; inventory modelling; inventory management.
International Journal of Electronic Business, 2009 Vol.7 No.1, pp.68 - 85
Published online: 02 Mar 2009 *Full-text access for editors Access for subscribers Purchase this article Comment on this article