Inventory Record Inaccuracy¶
DeHoratius, N., & Raman, A. (2008). Inventory Record Inaccuracy: An Empirical Analysis. Management Science, 54(4), 627-641.
Cited by¶
1 citation across 1 artifact.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Record-Reality Divergence
- In a warehouse, the external state is the physical stock actually on the shelf, which changes on its own clock through sales, theft, damage, and mis-shelving; the authoritative record is the ERP system's stock level; the update cadence is the cycle-count schedule; and downstream consumption is the automated replenishment algorithm that reorders based on the record without looking at the shelf. Directional divergence is the diagnostic crux: shrinkage and mis-scans make the record overstate real stock, so the algorithm under-orders, producing silent stock-outs the system cannot see because its picture says inventory exists
This sourceEmpirically documents phantom inventory — stock records (65% inaccurate in the sample) overstating real stock through shrinkage/mis-scans — and its effect on replenishment.
Supported in partVerified against the publisher's abstract
Documents inventory record inaccuracy (65% of ~370,000 records) and its bearing on replenishment planning, but the abstract states no direction of error.
“Examining nearly 370,000 inventory records from 37 stores of one retailer, we find 65% to be inaccurate.”
- In a warehouse, the external state is the physical stock actually on the shelf, which changes on its own clock through sales, theft, damage, and mis-shelving; the authoritative record is the ERP system's stock level; the update cadence is the cycle-count schedule; and downstream consumption is the automated replenishment algorithm that reorders based on the record without looking at the shelf. Directional divergence is the diagnostic crux: shrinkage and mis-scans make the record overstate real stock, so the algorithm under-orders, producing silent stock-outs the system cannot see because its picture says inventory exists
Verification¶
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Registry ID ref:161173f134bb · see in the full table