Staistical inventory control in theory and practice

Curtis P. McLaughlin, Gyula Vastag, D. Clay Whybark

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

In this paper the authors report on three areas where statistical inventory control (SIC) expectations diverge from reality. First, actual inventory performance seems immune to the use of modern techniques like material requirements planning (MRP) or just-in-time (JIT). Second, simulation studies seem to provide higher than expected customer service levels. Finally, dynamic organizational actions appear to change both the rules of the game and the way that it is scored. These observations suggest that the lack of effectiveness of SIC models in practice cannot be blamed exclusively on the scientists or the practitioners. The paper suggests that practitioners have not done well in applying the models that are available to them. It also points out that theory and practice are still far apart and suggests some research to remedy this.

Original languageEnglish
Pages (from-to)161-169
Number of pages9
JournalInternational Journal of Production Economics
Volume35
Issue number1-3
DOIs
Publication statusPublished - Jun 1994

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ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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