“…In the present day, the difference between physically inventory level and system inventory level is not sufficiently understood to explain or predict its effect on performance (Nachtmann et al 2010, Rekik et al 2008b, Rekik 2011, Rekik and Sahin 2012. However, inventory inaccuracy appears to be a significant problem in practice (Kang and Gershwin 2005, Heese 2007, Uckum et al 2008, Hollinger and Adams 2010, Xu et al 2012, Hardgrave 2013, Mersereau 2013, Metzger et al 2013, Bruccoleri et al 2014 In an empirical investigation, DeHoratious and Raman (2008) observed inaccuracies of 65% on 369.567 inventory records collected from 37 leading retailers in USA. In their study, they conclude that these inaccuracies do not only affect retailers' operational performance, but also that of upstream supply chain partners (Kwak and Gavierneri 2014).…”