| This research explores data inaccuracy and its impact on supply chain inventory performance. Theft and data entry error cause differences between the physical inventory levels and inventory levels recorded in the computer system. Physical inventory counts are one method commonly used to align physical and recorded inventory levels. Expected benefits of new technology, such as radio frequency identification (RFID) include improvements in the accuracy of supply chain data, including possibilities of real-time alignment of the data.; This research looks at the factors of theft, order error, lead time, synchronization frequency, demand variability, stock-out policy, two separate ordering policies and their impact on inventory performance in a three-level supply chain setting for a single item. The order policies considered are the reorder point (ROP) policy with a fixed order quantity and the order-up-to (OUT) policy with a variable order quantity. Simulation modeling is used to analyze factor impacts on the service level degradation, inventory level degradation, and inventory inaccuracy. Factors and performance measures are analyzed at the system level and the individual echelon level. |
