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warehousing

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

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