Inventory Metrics

Inventory Accuracy Calculator

Inventory accuracy measures how closely your inventory records match the actual physical inventory. High accuracy is essential for reliable planning, order fulfillment, and financial reporting.

Cycle Count Data

SKU-Based Accuracy

Value-Based Accuracy (Optional)

Formula

Accuracy = (Matching SKUs / Total SKUs Counted) × 100%

A SKU matches when the system quantity equals the physical count (within acceptable tolerance). This metric can also be calculated by dollar value.

Variable Definitions

SKU Accuracy

SKU-Level Accuracy

Percentage of SKUs where count matches records.

Value Accuracy

Dollar Accuracy

Accuracy weighted by inventory value.

Tolerance

Count Tolerance

Acceptable variance (e.g., ±1 unit or ±1%).

Example Calculation

Scenario: Cycle count results: - Total SKUs counted: 200 - SKUs matching records: 188 - Total inventory value: $500,000 - Value of matching SKUs: $485,000 SKU Accuracy = 188 / 200 × 100% = 94% Value Accuracy = $485,000 / $500,000 × 100% = 97%

How to Interpret Your Result

Target accuracy levels: • 95%+: World-class inventory management • 90-95%: Good, suitable for most operations • 85-90%: Needs improvement • Below 85%: Significant issues requiring attention Value accuracy is often higher than SKU accuracy because discrepancies tend to occur in lower-value items.

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Frequently Asked Questions