Papers
Reference #:
Date: September 28, 2023
Inventory Accuracy | Whitepaper
Abstract:
The advancement of technology has greatly impacted the efficiency and accuracy of measuring and managing inventory. The benefits are considerable: less time counting inventory, more accurate inventory counts, better on-shelf availability, and ultimately, higher customer satisfaction. In the past, inventory accuracy has been calculated in many different ways. This paper reviews the most prominent inventory accuracy methods and proposes the most appropriate method for measuring inventory accuracy across industry lines. Perpetual Inventory (PI) is what is believed to be in a store or facility at any given time, and PI Accuracy is how closely the actual count of units in the store is to what is thought to be there. The underlying notion of PI Accuracy seems universal, but it is debated on how this exact metric should be calculated and interpreted. This paper also explores these differences in detail, including their calculations and associated implications.