Effects of information quality on inventory management

Abstract

This paper investigated how different IQ categories affect the quality of inventory control decisions. The result has shown that intrinsic IQ and contextual IQ are positively related to inventory decision quality, indicating that intrinsic IQ and contextual IQ are the underlying concerns in improving inventory decision quality. It is also found that the effect of representational IQ on inventory decision quality is non-significant. However, under just-in-time inventory policy, representational IQ and contextual IQ jointly affect inventory decision quality. This result indicates that improving representational IQ may intensify the positive effects of contextual IQ.

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