Journal of Business Logistics · 2010 · 49 citations · 0 references
ManagementOperations ManagementSupply Chain ManagementInventory ControlInventory ManagementSupply Chain Performance ManagementInventory Management SystemsInventory Record AccuracyInventory SystemsInventory TheoryMeasurement ErrorRetail Inventory ManagementInventory AccuracyInventory Data QualityInventory Error Root Cause AnalysisInventory MisstatementsInventory Record KeepingInventory Reporting AccuracyPoint Of Sale ReportingRetail Chains
The presence or absence of error in point‐of‐sale (POS) data and inventory system records directly affects retailer performance. This study identifies various error sources in retail supply chains and studies the influence of inventory and POS (demand) errors in a simulated retail outlet according to fill rate and average inventory. Other things being equal, we find that inventory record error reduces fill rate more than demand error. This study adds further evidence to other studies that suggest the costs caused by errors in POS systems may be overstated.