Inventory Auditing and Replenishment Using Point-of-Sales Data

Achal Bassamboo, Antonio Moreno, Ioannis Stamatopoulos*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


Spoilage, expiration, damage due to employee/customer handling, employee theft, and customer shoplifting usually are not reflected in inventory records. As a result, records often report phantom inventory, that is, units of good not available for sale. We derive an optimal polynomial-time algorithm for the auditing and replenishment problem with phantom inventory, under the assumption that inventory is known immediately after replenishment. Moreover, we numerically show that a service-level threshold policy performs comparably to the optimal.

Original languageEnglish (US)
Pages (from-to)1219-1231
Number of pages13
JournalProduction and Operations Management
Issue number5
StatePublished - May 1 2020


  • inventory management
  • inventory record inaccuracy
  • retail

ASJC Scopus subject areas

  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Management of Technology and Innovation


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