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Inventory Auditing and Replenishment Using Point‐of‐Sales Data

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  • Achal Bassamboo
  • Antonio Moreno
  • Ioannis Stamatopoulos

Abstract

Spoilage, expiration, damage due to employee/customer handling, employee theft, and customer shoplifting usually are not reflected in inventory records. As a result, records often report phantom inventory, that is, units of good not available for sale. We derive an optimal polynomial‐time algorithm for the auditing and replenishment problem with phantom inventory, under the assumption that inventory is known immediately after replenishment. Moreover, we numerically show that a service‐level threshold policy performs comparably to the optimal.

Suggested Citation

  • Achal Bassamboo & Antonio Moreno & Ioannis Stamatopoulos, 2020. "Inventory Auditing and Replenishment Using Point‐of‐Sales Data," Production and Operations Management, Production and Operations Management Society, vol. 29(5), pages 1219-1231, May.
    • Handle: RePEc:bla:popmgt:v:29:y:2020:i:5:p:1219-1231
    DOI: 10.1111/poms.13153
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    References listed on IDEAS

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    Cited by:

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