chapter  5
8 Pages

Chapter.5. Inventory.Record.Accuracy

The Need for Inventory Record Accuracy Inventory accuracy is defined as a situation when the records accurately reflect the actual amount of stock that is physically on hand. For example, if the record at a certain point in time shows 100 pieces of part number KR7351 and, in fact, the shelf shows 100 pieces on hand and there is no trans­ action pending anywhere in the system, then we can say that the record for the part number is accurate. Now, if we take the same information for all part numbers in the company, say, for all 500 part numbers, we can compute an accuracy figure for the whole company.