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Maintaining Inventory System Accuracy
Author(s) -
Ernst Ricardo,
Guerrero JoséLuis,
Roshwalb Alan
Publication year - 1992
Publication title -
international journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1055-6001
DOI - 10.1111/j.1745-493x.1992.tb00569.x
Subject(s) - measure (data warehouse) , inventory control , computer science , control (management) , inventory management , quality (philosophy) , operations management , operations research , data mining , engineering , artificial intelligence , philosophy , epistemology
In practice, managers rely on methods to measure inventory accuracy that are not necessarily developed for that purpose. This article presents a new approach for evaluating the accuracy of an inventory management system. The methodology is based on a simple measure ( AC N ) that considers the proportion of error in every record, while recognizing the difference between the positive and negative balances. This measure will change over time, and therefore quality control charts can be used to monitor the performance of the inventory management system. An illustration based on an inventory population for a retail pharmaceutical operation is discussed.