Information Exchange Supply Chain under inventory inaccuracy: a simulation study

Abstract

The objective of this paper is to contribute at quantifying the impact of inventory record inaccuracy on operational performance and customer service level in collaborative supply chains. To this purpose we analyse the impact of shrinkage errors in the inventory item recording activity in an “information exchange supply chain”, i.e. a supply chain in which companies share information about market demand and use such information for placing orders to their suppliers. We present the mathematical formulation of such a supply chain model and we conduct a numerical simulation and a sensitivity analysis over different level of errors.