Analysis of inventory record accuracy

the long version

The inventory record accuracy problem was studied using a complex simulation model of stock point supply operations. Complete item and error data were obtained from various sources within the Navy Supply System. The experiments related the presence of stock record errors to supply operations, in terms of quantified measures, and in an environment of imperfect receipt and issue processing, and physical inventories, supply effectiveness was tested against record accuracy. A rational criterion for determining the optimal physical inventory policy was developed. (Author)