STATISTICAL INVENTORY CONTROL IN THEORY AND PRACTICE

MCLAUGHLIN, CP and Vastag, Gyula and WHYBARK, DC (1994) STATISTICAL INVENTORY CONTROL IN THEORY AND PRACTICE. INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, 35 (1-3). pp. 161-169. ISSN 0925-5273

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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.

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