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1 – 10 of 971
Article
Publication date: 14 November 2016

Sandeep Goyal, Bill C. Hardgrave, John A. Aloysius and Nicole DeHoratius

Perceived as an antidote to poor execution, interest in radio frequency identification (RFID)-enabled visibility has grown. The purpose of this paper is to examine whether and how…

3065

Abstract

Purpose

Perceived as an antidote to poor execution, interest in radio frequency identification (RFID)-enabled visibility has grown. The purpose of this paper is to examine whether and how RFID-enabled visibility with item-level tagging improves store execution.

Design/methodology/approach

The authors conducted three field-based experiments in collaboration with two Fortune 500 retailers.

Findings

RFID-enabled visibility resulted in a sizable decrease in inventory record inaccuracy and out-of-stocks for inventory held in both the backroom and on the sales floor. The decrease in inventory record inaccuracy and out-of-stocks was even greater among products stored primarily on the sales floor suggesting the benefits from increased visibility accrue to sales floor inventory management processes. In contrast, the authors found no significant improvement in inventory record inaccuracy and no substantive improvement in out-of-stocks among products stored primarily in the backroom suggesting that increased visibility does not improve backroom management processes.

Practical implications

The authors recommend retailers focus on sales floor inventory management when seeking to improve store execution through the adoption of RFID-enabled visibility. In the context, only partial evidence exists that backroom inventory management improves with RFID-enabled visibility.

Originality/value

Retailers seeking to invest in RFID technology must estimate potential performance improvements before making firm-specific cost-benefit analyses. They must also understand where and how these performance improvements will accrue. This research uniquely presents the results of a three field experiments that quantify the changes in retail execution associated with RFID adoption.

Details

The International Journal of Logistics Management, vol. 27 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 11 February 2019

Maria Drakaki and Panagiotis Tzionas

Information distortion results in demand variance amplification in upstream supply chain members, known as the bullwhip effect, and inventory inaccuracy in the inventory records…

1146

Abstract

Purpose

Information distortion results in demand variance amplification in upstream supply chain members, known as the bullwhip effect, and inventory inaccuracy in the inventory records. As inventory inaccuracy contributes to the bullwhip effect, the purpose of this paper is to investigate the impact of inventory inaccuracy on the bullwhip effect in radio-frequency identification (RFID)-enabled supply chains and, in this context, to evaluate supply chain performance because of the RFID technology.

Design/methodology/approach

A simulation modeling method based on hierarchical timed colored petri nets is presented to model inventory management in multi-stage serial supply chains subject to inventory inaccuracy for various traditional and information sharing configurations in the presence and absence of RFID. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results.

Findings

The bullwhip effect is increased in RFID-enabled multi-stage serial supply chains subject to inventory inaccuracy. The information sharing supply chain is more sensitive to the impact of inventory inaccuracy.

Research limitations/implications

Information sharing involves collaboration in market demand and inventory inaccuracy, whereas RFID is implemented by all echelons. To obtain the full benefits of RFID adoption and collaboration, different collaboration strategies should be investigated.

Originality/value

Colored petri nets simulation modeling of the inventory management process is a novel approach to study supply chain dynamics. In the context of inventory errors, information on RFID impact on the dynamic behavior of multi-stage serial supply chains is provided.

Details

Journal of Modelling in Management, vol. 14 no. 2
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 3 November 2014

Manfredi Bruccoleri, Salvatore Cannella and Giulia La Porta

– The purpose of this paper is to explore the effect of inventory record inaccuracy due to behavioral aspects of workers on the order and inventory variance amplification.

2676

Abstract

Purpose

The purpose of this paper is to explore the effect of inventory record inaccuracy due to behavioral aspects of workers on the order and inventory variance amplification.

Design/methodology/approach

The authors adopt a continuous-time analytical approach to describe the effect of inbound throughput on the inventory and order variance amplification due to the workload pressure and arousal of workers. The model is numerically solved through simulation and results are analyzed with statistical general linear model.

Findings

Inventory management policies that usually dampen variance amplification are not effective when inaccuracy is generated due to workers’ behavioral aspects. Specifically, the psychological sensitivity and stability of workers to deal with a given range of operational conditions have a combined and multiplying effect over the amplification of order and inventory variance generated by her/his errors.

Research limitations/implications

The main limitation of the research is that the authors model workers’ behavior by inheriting a well-known theory from psychology that assumes a U-shaped relationship between stress and errors. The authors do not validate this relationship in the specific context of inventory operations.

Practical implications

The paper gives suggestions for managers who are responsible for designing order and inventory policies on how to take into account workers’ behavioral reaction to work pressure.

Originality/value

The logistics management literature does not lack of research works on behavioral decision-making causes of order and inventory variance amplification. Contrarily, this paper investigates a new kind of behavioral issue, namely, the impact of psycho-behavioral aspects of workers on variance amplification.

Details

International Journal of Physical Distribution & Logistics Management, vol. 44 no. 10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 September 2006

Matthew A. Waller, Heather Nachtmann and Justin Hunter

This research aims to consider the impact of common inventory system inaccuracies that occur in retail outlets on the inventory levels, fill rate, and service level of those…

4685

Abstract

Purpose

This research aims to consider the impact of common inventory system inaccuracies that occur in retail outlets on the inventory levels, fill rate, and service level of those outlets by simulating daily customer demand and random error in the inventory system.

Design/methodology/approach

The simulation experiments vary the amount of inventory system error, the frequency of inventory record error correction, the size of the daily demand, the number of days in the replenishment system's review interval, and the replenishment system's customer service level.

Findings

Inventory system error and the frequency with which the error is corrected are statistically significant for fill rate and service level. Thus, inaccuracies in inventory levels affect a retail outlet's ability to service its customers, though at the single SKU level, the results do not indicate a practical impact due to countervailing effects.

Practical implications

Retail outlets must be aware that error exists and can influence the behavior of their replenishment systems, but the overall impact may not be as significant as it might appear.

Originality/value

This research extends prior work on the effects of inventory inaccuracies and clarifies the debate pertaining to their ultimate effects on retail performance outcomes.

Details

The International Journal of Logistics Management, vol. 17 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 27 April 2023

Mukesh Kumar

The purpose of this paper is to identify the radio frequency identification (RFID) strategic value attributes (RFIDSVAs) mechanism selections preferences and also integration of…

Abstract

Purpose

The purpose of this paper is to identify the radio frequency identification (RFID) strategic value attributes (RFIDSVAs) mechanism selections preferences and also integration of RFID tags with technology coordination tools (IRTWTCTs) alternatives ranking performance decisions in supply chain management (SCM). RFID-enabled techno-economic feasibility decisions are enhancing the SC visibility in apparel supply chains (ASCs). The RFIDSVAs mechanism selections have performed significant agility to strategic competitive advantages, namely, inventory visibility, multi-tags ownership transfer within trusted third party, etc.

Design/methodology/approach

Fuzzy analytical hierarchy process (FAHP) and FAHP-fuzzy Technique for Order of Preference by Similarity to Ideal Solution (FTOPSIS) approaches have been used to evaluate the quantitative assessment of RFIDSVA mechanisms selection decision based on weight priority orders and IRTWTCTs alternatives selection in ASC networks. The comparison of FAHP and FAHP-FTOPSIS approaches to evaluate the integrated framework develop in RFIDSVAs mechanisms and IRTWTCTs alternatives selection decisions in Indian multi-tier ASC networks.

Findings

The result found that the FAHP-FTOPSIS approaches have used to prioritizing the RFIDSVA mechanism selection weights and also identify the IRTWTCTs alternatives ranking preferences order in apparel SCM. The comparison between the FAHP and FAHP-FTOPSIS approach to quantitative assessments from RFIDSVA mechanisms and IRTWTCTs alternatives selection decisions, which enable them SC agility potential across multi-tier visibility in ASC networks. ASC stakeholders can be benefited by techno-economic feasibility decisions, RFID-enabled shop floor activities, multi-tags ownerships transfer in SCs and knowledge-based cryptography tags/items separation in SCs.

Research limitations/implications

The research work has considered only five RFIDSVA mechanisms and also three integration of RFIDTWTCTs alternatives in multi-tier ASC. The strategic competitive advantages are achieved by RFID-enabled break-even tags price decisions and also techno-economic feasibility decision by contractual design multi-tier SC stakeholder’s involvements.

Practical implications

The pilot project study explores that the quantitative assessment decision has based on RFID-enable techno-economic feasibility in ASCs. Stakeholders can be benefited by inventory control of the financial losses, reducing the inventory inaccuracies and multi-tags ownership transfer within trusted third-party traceability in ASC networks.

Originality/value

This study explores the RFID-enabled apparel SC process and activities visibility (natural fibre’s fibre producer, fibre dyeing producer, yarn spinning producer, knitting and finishing producer).

Details

Journal of Modelling in Management, vol. 18 no. 4
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 25 April 2008

Kazim Sari

This paper aims to explore the impact of inventory system inaccuracies on the benefits of collaborative supply chain practices under various supply chain scenarios. To achieve…

5542

Abstract

Purpose

This paper aims to explore the impact of inventory system inaccuracies on the benefits of collaborative supply chain practices under various supply chain scenarios. To achieve this purpose, two popular collaboration initiatives are considered in a four‐stage supply chain. The first practice is a vendor managed inventory program where the distributor takes the full responsibility of managing the retailer's inventory. The second practice is a collaborative planning, forecasting, and replenishment program where all members work together to plan, forecast, and replenish the product.

Design/methodology/approach

The study utilizes Monte Carlo computer simulation in an experimental design.

Findings

The analysis suggests that while the inaccurate inventory records result in significant performance reductions for all supply chain configurations, their impact is substantially greater for the supply chains where members collaborate more closely on key supply chain management activities. In addition, the author also realize that the adverse impact of inaccurate inventory information is stronger under the conditions where lead times are shorter and/or where demand uncertainty in market place is lower.

Practical implications

This analysis provides a means for practitioners to realize the importance of inventory accuracy to successful adaptation of collaborative supply chain practices. Moreover, this research also helps in understanding the supply chain conditions where the attempts of eliminating or reducing errors in inventory information are more crucial and more beneficial.

Originality/value

Although there is a range of research focusing on collaborative practices, none of these studies considered the errors in inventory information. This is the first study to investigate the impact of inaccurate inventory information on the benefits of collaborative practices.

Details

Industrial Management & Data Systems, vol. 108 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 28 September 2010

Daniel Hellström and Mathias Wiberg

This paper aims to explore and describe the impact of radio frequency identification (RFID) technology on inventory accuracy within a production and assembly plant, and to propose…

2883

Abstract

Purpose

This paper aims to explore and describe the impact of radio frequency identification (RFID) technology on inventory accuracy within a production and assembly plant, and to propose a model for assessing the impact of the technology on inventory accuracy.

Design/methodology/approach

The empirical investigation, based on case study research, focuses on an RFID implementation at a supplier of injection‐moulded, surface‐treated plastic to the automotive industry. This implementation is one of the few item‐level, open‐loop RFID implementations in the automotive industry.

Findings

The empirical paper provides insights into, how inventory accuracy has been improved and made attainable in practice by implementing RFID, and indicates that the technology ensures inventory inaccuracy will be kept at a minimum. As a result, an analytical model is presented which identifies the impact of RFID technology on inventory accuracy.

Research limitations/implications

The case study and context need to be considered when generalising upon the findings. Furthermore, it is hoped future research could further develop the model presented and test it against implementation practice.

Practical implications

RFID technology provides practitioners with the opportunity to eliminate waste, and improve production and assembly performance. The research provides practitioners with experience of, and insights into how a production and assembly plant has improved inventory accuracy by implementing RFID technology. In particular, practitioners are provided with a model which enables them to assess the impact of RFID on inventory accuracy.

Originality/value

This paper contributes to the RFID community by providing empirical insights into the impact of RFID technology on inventory accuracy, but also more broadly into logistics and operations management research.

Details

Assembly Automation, vol. 30 no. 4
Type: Research Article
ISSN: 0144-5154

Keywords

Article
Publication date: 21 June 2022

Julian Best, Christoph H. Glock, Eric H. Grosse, Yacine Rekik and Aris Syntetos

Ensuring high on-shelf availability at low inventory costs remains an important challenge in retailing. Inaccurate inventory records, i.e. discrepancies between the stock records…

Abstract

Purpose

Ensuring high on-shelf availability at low inventory costs remains an important challenge in retailing. Inaccurate inventory records, i.e. discrepancies between the stock records displayed in the inventory system and the stock quantity actually found in the retail store, have been identified as one of the most important drivers of retail stockouts in the past. The purpose of this work is to investigate the causes of positive inventory discrepancies in retailing, i.e. where there is more inventory on-hand than identified by the inventory system.

Design/methodology/approach

Based on input from retailers, the authors develop a simulation model of a retail store that considers various error-prone processes and study in a full factorial test design how the different operational errors may drive inventory discrepancies, paying special attention to the sources of positive inventory record inaccuracies.

Findings

This makes it possible to gain insights into the process parameters retailers need to adjust to avoid inventory records becoming inaccurate. In addition, the authors analyze how positive inventory discrepancies relate to stockouts to further our understanding of the role so-called phantom products may play in a retailing context.

Originality/value

While negative inventory discrepancies (where the stock that is available in the store is less than what the system displays) and their sources (theft, shrinkage, etc.) have been discussed quite frequently in the literature, the causes of positive inventory discrepancies (where the available inventory exceeds the system inventory) have received much less attention.

Details

International Journal of Physical Distribution & Logistics Management, vol. 52 no. 5/6
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 28 November 2019

Marc Morenza-Cinos, Victor Casamayor-Pujol and Rafael Pous

The combination of the latest advancements in information and communication technologies with the latest developments in AutoID technologies, especially radio frequency…

1871

Abstract

Purpose

The combination of the latest advancements in information and communication technologies with the latest developments in AutoID technologies, especially radio frequency identification (RFID), brings the possibility of high-resolution, item-level visibility of the entire supply chain. In the particular case of retail, visibility of both the stock count and item location in the shop floor is crucial not only for an effective management of the retail supply chain but also for physical retail stores to compete with online retailers. The purpose of this paper is to propose an autonomous robot that can perform stock-taking using RFID for item-level identification much more accurately and efficiently than the traditional method of using human operators with RFID handheld readers.

Design/methodology/approach

This work follows the design science research methodology. The paper highlights a required improvement for an RFID inventory robot. The design hypothesis leads to a novel algorithm. Then the cycle of development and evaluation is iterated several times. Finally, conclusions are derived and a new basis for further development is provided.

Findings

An autonomous robot for stock-taking is proven feasible. By applying a proper navigation strategy, coupled to the stream of identifications, the accuracy, precision, consistency and time to complete stock-taking are significantly better than doing the same task manually.

Research limitations/implications

The main limitation of this work is the unavailability of data to analyze the actual impact on the correction of inventory record inaccuracy and its subsequent implications for the supply chain management. Nonetheless, it is shown that figures of actual stock-tacking procedures can be significantly improved.

Originality/value

This paper discloses the potential of deploying an inventory robot in the supply chain. The robot is called to be a key source of inventory data conforming supply chain management 4.0 and omnichannel retail.

Details

International Journal of Physical Distribution & Logistics Management, vol. 49 no. 10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 4 July 2016

Gülşah Hançerlioğulları, Alper Şen and Esra Ağca Aktunç

The purpose of this paper is to investigate the impact of demand uncertainty on inventory turnover performance through empirical modeling. In particular the authors use the…

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Abstract

Purpose

The purpose of this paper is to investigate the impact of demand uncertainty on inventory turnover performance through empirical modeling. In particular the authors use the inaccuracy of quarterly sales forecasts as a proxy for demand uncertainty and study its impact on firm-level inventory turnover ratios.

Design/methodology/approach

The authors use regression analysis to study the effect of various measures on inventory performance. The authors use a sample financial data for 304 publicly listed US retail firms for the 25-year period from 1985 to 2009.

Findings

Controlling for the effects of retail segments and year, it is found that inventory turnover is negatively correlated with mean absolute percentage error of quarterly sales forecasts and gross margin and positively correlated with capital intensity and sales surprise. These four variables explain 73.7 percent of the variation across firms and over time and 93.4 percent of the within-firm variation in the data.

Practical implications

In addition to conducting an empirical investigation for the sources of variation in a major operational metric, the results in this study can also be used to benchmark a retailer’s inventory performance against its competitors.

Originality/value

The authors develop a new proxy to measure the demand uncertainty that a firm faces and show that this measure may help to explain the variation in inventory performance.

Details

International Journal of Physical Distribution & Logistics Management, vol. 46 no. 6/7
Type: Research Article
ISSN: 0960-0035

Keywords

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