Inventory Inaccuracies In Supply Chains: How Can RFID Improve The Performance?

Yacine Rekik ()
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Yacine Rekik: EM - EMLyon Business School

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Abstract: Inventory inaccuracy occurs when the information system (IS) inventory, that is, what, according to the IS, is available, does not match the physical inventory, that is, what is actually available. The IS inventory, contrary to popular belief and assumptions in most academic papers and in spite of the considerable amounts invested in information technology, is often inaccurate. In this article, we first describe the major factors generating inventory inaccuracy. Then, we present main solutions that allow tackling the inaccuracy issue. We also provide a framework that permits modeling the inventory inaccuracy issue and focus on the impact of an advanced identification system such as radio‐frequency identification (RFID) technology in improving the performance of a supply chain subject to inventory inaccuracies.

Keywords: RFID technology; inventory inaccuracy; inaccuracy modeling; error distribution; inaccuracy sources; Supply Chain Management (search for similar items in EconPapers)
Date: 2011-01-14
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Published in Wiley Encyclopedia of Operations Research and Management Science, pp.13, 2011, ⟨10.1002/9780470400531.eorms0432⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05672263

DOI: 10.1002/9780470400531.eorms0432

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