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...

We propose a simple explanation for price rigidity in perishable groceries: inventory record inaccuracy (IRI). We build our argument in two steps. First, we tailor Gallego and Van Ryzin’s (1994) revenue management model to perishable groceries by adding an inventory waste process,...

We study the effects of the introduction of cross-channel functionalities on the overall sales dispersion of retailers and the implications of these effects for inventory management. To do that, we analyze data from a leading U.S. retailer who introduced a “ship-to-store” (STS) functionality...