Inventory Record Accuracy
The share of counted locations or items whose system quantity matches the physical quantity.
Definition
The share of counted locations or items whose system quantity matches the physical quantity.
Why it matters
Every plan, promise and replenishment decision assumes the record is right. Inaccurate records cause phantom stock and emergency freight.
Formula
IRA = Matching Records / Records Counted x 100
Example
962 of 1,000 counted locations matched = 96.2%.
How to interpret it
Measure at location level with zero tolerance on unit quantity. Value-based accuracy flatters the result.
How to improve it
Run a cycle count program weighted by velocity, fix root causes rather than adjusting quantities, and control transactions at the point of movement.
Common mistakes
Adjusting the system to match the count without ever asking why the variance happened.
Related KPIs
Last updated