Analysis of the impact of the RFID technology on reducing product misplacement errors at retail stores

Rekik, Yacine; Şahin, Evren; Dallery, Yves

doi:10.1016/j.ijpe.2006.08.024

Cited by 198 publications

(90 citation statements)

References 4 publications

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“…RFId, in combination with other systems, is becoming the basis for new solutions, contributing to better management of supply chains in terms of cost reduction and improvement of customer service levels (Sahin 2004). Benefits of using RFId include the reduction of labour costs, the simplification of business processes and the reduction of inventory inaccuracies (Rekik et al 2008). The cause for the out-of-stock issue is the factor related to store shelving and replenishment practices, in which the products ordered are in the store but not on the right shelf.…”

Section: Methodsmentioning

confidence: 99%

Bayesian belief network for assessing impact of factors on army’s lean–agile replenishment system

Sharma

Kulkarni

2016

Journal of Military Studies

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A dynamic time-separated lean-agile spare part replenishment system can prove beneficial to the army by being efficient (cost saving) during peace and effective (assured availability) during war. The logistics echelons must have certain attributes in order to implement such a dynamic replenishment system. The purpose of this article is to identify the factors/attributes that are necessary in a spare part replenishment system of vehicles and weapon platforms in order to implement a time-separated leanagile strategy through a systematic literature review. Furthermore, the article will investigate the impact of these factors/attributes, individually and collectively, on overall system performance. This will enable logistics managers to focus only on the factors that have greater impact on the system. A model explaining the effects of various contributory factors/attributes on the overall logistics system has been developed through a comprehensive literature review, experts' judgments and inputs from practising logisticians in the military field. The article then models the system using a Bayesian belief network (BBN) on Netica software. After the development of the model using Netica, a sensitivity analysis based on the mutual information criterion is conducted to identify the critical factors that most significantly affect a dynamic lean-agile spare part replenishment system. The study addresses the identified need of applying BBN to model an uncertain and complex military logistics domain.

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Section: Methodsmentioning

confidence: 99%

Bayesian belief network for assessing impact of factors on army’s lean–agile replenishment system

Sharma

Kulkarni

2016

Journal of Military Studies

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“…One stream has focused on optimal decision making when subject to inventory inaccuracy [1,11,12,21]. Specifically, these studies have dealt with the inventory errors from different sources, such as temporary shrinkage [22,23], transaction errors [24], and misplaced inventory [25,26]. The other stream mainly investigates the effect of inventory inaccuracy on supply chain performance [27][28][29], among which several studies have analyzed the effect of inventory inaccuracy on collaborative Supply Chains [6,30,31].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Rekik et al [25] presented an analytical model of a single-period retailer subject to misplacement errors. They showed the impact of misplacement errors on ordering decisions and explored the benefits of implementing the RFID technology.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Normally, misplacement occurs gradually over time in real-life situations. However, this assumption is widely used in the literature of misplaced inventory for analytical tractability [25,32]. Therefore, only (1 − β)Q amount of items are available for customers.…”

Section: Assumptionmentioning

confidence: 99%

“…To obtain closed-form analytical expressions, we assume that customer demand is uniformly distributed on [0, D max ], which is commonly adopted in inventory management literature [25,45].…”

Section: Assumptionmentioning

confidence: 99%

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Risk Analysis of a Two-Level Supply Chain Subject to Misplaced Inventory

Zhu

Lee

2017

Applied Sciences

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Abstract:Misplaced inventory is prevalent in retail stores and may lead to the overall poor performance of the supply chain. We explore the impact of misplaced inventory on a two-level supply chain, which consists of a risk-neutral supplier and a risk-averse retailer. The supplier decides the wholesale price to maximize her profit, whereas the retailer decides the order quantity to maximize his utility. Under the Conditional Value-at-Risk (CVaR) criterion, we formulate the problem as a Stackelberg game model and obtain the equilibrium solutions in three cases: (i) information asymmetry about inventory errors exists; (ii) the retailer shares information about inventory errors with the supplier; and (iii) in order to reduce misplaced inventory, the supply chain deploys Radio-Frequency Identification (RFID) technology. The benefits of information sharing and RFID implementation are explored. A revenue and cost sharing contract is proposed to coordinate the supply chain and to allocate the cost savings from RFID implementation among supply chain participants. Finally, we provide managerial insights for risk-averse decision makers that are considering investing in the RFID technology.

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Inventory Record Inaccuracy in Retail Supply Chains

DeHoratius¹

2011

Wiley Encyclopedia of Operations Research and Management Science

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Inventory record inaccuracy (IRI), defined as the discrepancy between the recorded inventory quantity and the actual inventory quantity physically available on the shelf, is a substantial problem in retailing. This article summarizes the research documenting the problem of IRI within retail supply chains and reviews several potential solutions to IRI offered by operations management researchers. In addition, this article explores how execution problems within retail distribution centers (DCs) contribute to store‐level IRI. Through direct observations and interviews with retail employees, we identify numerous errors that occur within the retail DC and how such errors create a mismatch between actual and recorded store inventory. We argue that it is critical to detect, determine the root cause of, and correct such errors in an effort to prevent them from cascading from one stage of the distribution process to the next. We claim error prevention in distribution, similar to quality improvement in manufacturing, requires improving workforce practices, fool‐proofing operational processes, and appropriate incentive design. We conclude with our recommendations for further study on this topic.

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Analysis of the impact of the RFID technology on reducing product misplacement errors at retail stores

Cited by 198 publications

References 4 publications

Bayesian belief network for assessing impact of factors on army’s lean–agile replenishment system

Bayesian belief network for assessing impact of factors on army’s lean–agile replenishment system

Risk Analysis of a Two-Level Supply Chain Subject to Misplaced Inventory

Inventory Record Inaccuracy in Retail Supply Chains

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