Inventory Accuracy
Category: Analytical
Measures the accuracy of inventory records compared to physical stock levels.
What it Measures ?
Compares recorded inventory to actual stock on hand.
Relevant StakeHolders
Inventory Controller, Warehouse Manager
Why it Matters ?
Increases inventory accuracy and reduces stockouts.
In-depth Use Case / Real-world Example
A company manufacturing toys calculates Inventory Accuracy by comparing its recorded inventory levels to the actual stock available in the warehouse. For example, if the company records having 1000 units of a specific toy, but upon counting the actual stock, it finds 950 units, the accuracy is 95%. High inventory accuracy minimizes stockouts and overstocking.
Sample Formula
(Accurate Inventory Count / Total Inventory) * 100