Inventory Record Accuracy by Roger B. Brooks download in ePub, pdf, iPad
In case of large inaccuracies however, this metric has the downside of not taking into account the size of each discrepancy. Items are mixed in the bin. You may uncover training issues, equipment issues, staffing issues or any number of other problems. Standardize your Bins or Pallets Tidiness counts when it comes to inventory storage and using a few standard sizes of bins and pallets can help keep the warehouse neat.
You magically find items not included in the on-hand balance or location records. The accuracy of the stocks on hand can be measured with a variety of metrics classically associated to forecasting problems. Lokad's gotcha Maintaining accurate inventory records is a requirement to achieve a satisfying level of inventory optimization. Accuracy means that when an employee goes to the location on the record, the part will be there, in that exact location, in the recorded quantity by lot or serial number and correctly labeled. The point is to resolve the issue, not bury it.
The total count is right but the item has multiple locations and the specific location count is wrong. In case any of these scenarios sound familiar, here are some best practices to consider when attempting to improve accuracy. Often times, the real issue with cycle counting is that people misunderstand its purpose. The resulting number is your inventory balance accuracy.
How to Calculate Inventory Accuracy To calculate inventory accuracy, divide the number of counted items that perfectly match every aspect of the record by the total number of items counted. Handwritten labels can also be hard to read. Indeed, the electronic value hold for any stock on hand can be seen as an estimation of the reality.
Labels should include human readable numbers as well as barcodes, and labels should be large enough to be easily read from a picking distance. Then, when inventory records are fairly accurate, the hit rate metric, that is, the percentage of inventory records that happen to be correct, can also be used.
While the root causes are diverse, those problems typically end-up generating stock on hand counts that diverge from their physical counterparts. This is how continuous improvement on the shop floor works, and it should be how continuous improvement in your inventory process works as well. Implementing a good barcode label printing program is an important step in improving accuracy. Items are misidentified or labeled incorrectly, even if the on-hand count is right.
If the company uses serial or lot number tracking, the inventory record must also correctly identify the lot or serial numbers on hand by location. The on-hand balance is off.
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