Operations Research, Systems Engineering and Industrial Engineering Commons^™

Periodic Replenish And Recount Policy To Address Record Inaccuracy From Stock Loss, Colton K. Ku

Masters Theses

Inventory record inaccuracy (IRI) often arises in retail environments due to unaccounted stock loss. Theft, misplacement, spoilage, and transaction errors will reduce the true inventory values without changing the inventory record. As previous inventory replenishment policies assume perfect record accuracy, increasing IRI can cause unexpected stockout events, mistimed reorders and replenishment freezes. Solutions to rectifying IRI vary from the use of improved tracking technologies to prevent it initially occurring at all to recounting programs which estimate true inventory value. Unfortunately, in retail environments, high‑tracking technology is unsuitable and continuous counting programs are too costly. To address the limitations of current …