Even if information technology (e.g. EDI) is used within a supply chain to share information on end-customer demand and inventory levels, there is still often a discrepancy between the data on customer demand or inventory levels in information systems, and the real physical flow of products. This discrepancy frequently stems from media breaks and the missing real-time or near real-time alignment of both data and the physical flow of goods. The result is inaccurate inventory information. The aim of this paper is to examine the relationship between inventory inaccuracy and performance in a retail supply chain.
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