1. What Is Inventory Accuracy?

Inventory accuracy measures the discrepancy between physical inventory counts and recorded system values. It is a critical metric for assessing the reliability of inventory management systems and identifying potential issues in stock tracking.

2. How Does The Calculator Work?

The calculator uses the inventory accuracy formula:

Where:

• \( \text{Counted Value} \) — Actual physical count of inventory items
• \( \text{System Value} \) — Recorded quantity in the inventory management system
• \( \text{Accuracy %} \) — Percentage accuracy between physical and system counts

Explanation: This formula calculates the percentage match between what is physically present and what the system records, helping identify discrepancies in inventory management.

3. Importance Of Inventory Accuracy

Details: High inventory accuracy is essential for effective supply chain management, preventing stockouts, reducing excess inventory, improving customer satisfaction, and ensuring accurate financial reporting.

4. Using The Calculator

Tips: Enter the counted value (actual physical count) and system value (recorded quantity) in units. Both values must be positive numbers, with system value greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is considered good inventory accuracy?
A: Most industries aim for 95% or higher accuracy. Retail typically targets 98-99%, while manufacturing may accept 95-97% depending on the product type.

Q2: What causes inventory inaccuracies?
A: Common causes include theft, damage not recorded, receiving errors, picking errors, system entry mistakes, and supplier discrepancies.

Q3: How often should inventory accuracy be measured?
A: Regular cycle counting (daily, weekly, or monthly) is recommended rather than annual physical counts for continuous accuracy monitoring.

Q4: Can accuracy exceed 100%?
A: Yes, if the physical count is higher than the system record, accuracy can exceed 100%, indicating under-recording in the system.

Q5: What actions should be taken for low accuracy?
A: Investigate root causes, improve receiving processes, enhance employee training, implement better tracking systems, and conduct regular audits.