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To investigate the application of multi‐attribute utility theory (MAUT) to aid in the decision‐making process when performing benchmarking gap analysis.

MAUT is selected to identify the overall best‐in‐class (BIC) performer for performance metrics involving inventory record accuracy within a public sector warehouse. A traditional benchmarking analysis is conducted on 14 industry warehouse participants to determine industry best practices for the four critical warehouse metrics of picking and inventory accuracy, storage speed, and order cycle time. Inventory and picking tolerances are also investigated in the study. A gap analysis is performed on the critical metrics and the absolute BIC is used to measure performance gaps for each metric. The gap analysis results are then compared to the MAUT utility values, and a sensitivity analysis is performed to compare the two methods.

The results indicate that an approach based on MAUT is advantageous in its ability to consider all critical metrics in a benchmarking study. The MAUT approach allows the assignment of priorities and analyzes the subjectivity for these decisions, and provides a framework to identify one performer as best across all critical metrics.

This research study uses the additive utility theory (AUT) which is only one of multiple decision theory techniques.

A new approach to determine the best performer in a benchmarking study.

Traditional benchmarking studies use gap analysis to identify a BIC performer over a single critical metric. This research integrates a mathematically driven decision analysis technique to determine the overall best performer over multiple critical metrics.

The purpose of this paper is to describe the development of a balanced scorecard (BSC) for flight line maintenance (MX) activities in the US Air Force.

The BSC development process consists of three stages: groundwork, design beginning with structuring of organizational strategic elements through performance measure identification and construction of the BSC framework, and finalization for continuous improvement.

Based on logistics expert responses the authors validated a case BSC for flight line MX activities within an aircraft maintenance unit. Validation was done with respect to perspective measures including mission, influencing factors, management, and information enhancement.

BSC development through identification of mission critical performance measures should improve performance of aircraft scheduling and achievement of mission objectives. Guidelines were used to develop a case validated by Air Force logistics personnel.

This research aims to consider the impact of common inventory system inaccuracies that occur in retail outlets on the inventory levels, fill rate, and service level of those outlets by simulating daily customer demand and random error in the inventory system.

The simulation experiments vary the amount of inventory system error, the frequency of inventory record error correction, the size of the daily demand, the number of days in the replenishment system's review interval, and the replenishment system's customer service level.

Inventory system error and the frequency with which the error is corrected are statistically significant for fill rate and service level. Thus, inaccuracies in inventory levels affect a retail outlet's ability to service its customers, though at the single SKU level, the results do not indicate a practical impact due to countervailing effects.

Retail outlets must be aware that error exists and can influence the behavior of their replenishment systems, but the overall impact may not be as significant as it might appear.

This research extends prior work on the effects of inventory inaccuracies and clarifies the debate pertaining to their ultimate effects on retail performance outcomes.