Measuring the effects of inventory inaccuracy in MRP inventory and delivery performance

Karen L. Brown · R. Anthony Inman · James A. Calloway

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Supply Chain and Inventory Management Management and Optimization Techniques Logistics and Transportation Systems

Abstract

The effectiveness of the definition of inventory accuracy primarily used by practitioners is investigated under both lot-for-lot and fixed-order-quantity policies. Frequency of error, the most commonly measured aspect, is found to be less than sufficient for controlling the percentage of late units and inventory carrying costs. The magnitude of error and product structure location can create significant problems for inventory managers.

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