The effect of inventory record inaccuracy in information exchange supply chains

Manfredi Bruccoleri, Susana Relvas, Salvatore Cannella, Jose M. Framinan, Ana Paula Barbosa-Póvoa, Salvatore Cannella

Research output: Contribution to journalArticlepeer-review

61 Citations (Scopus)


The goal of this paper is to quantify the impact of Inventory Record Inaccuracy on the dynamics of collaborative supply chains, both in terms of operational performance (i.e. order and inventory stability), and customer service level. To do so, we model an Information Exchange Supply Chain under shrinkage errors in the inventory item recording activity of their nodes, present the mathematical formulation of such supply chain model, and conduct a numerical simulation assuming different levels of errors. Results clearly show that Inventory Record Inaccuracy strongly compromises supply chain stability, particularly when moving upwards in the supply chain. Important managerial insights can be extracted from this analysis, such as the role of 'benefit-sharing' strategies in order to guarantee the advantage of investments in connectivity technologies.
Original languageEnglish
Pages (from-to)120-129
Number of pages10
JournalEuropean Journal of Operational Research
Publication statusPublished - 2015

All Science Journal Classification (ASJC) codes

  • General Computer Science
  • Modelling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management


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