Abstract :
Inventory Record Inaccuracy (IRI) presents critical challenges to warehouse operations by causing inefficiencies, financial losses, and diminished stakeholder trust. This study examines IRI at XYZ Warehouse through the analysis of Gross Variance and Net Variance, identifying a discrepancy rate of 0.53%, equivalent to 3,089 units or IDR 154,450,000 in potential financial losses. The findings emphasize the importance of accurate inventory management to mitigate these losses and improve operational efficiency. This study serves as a foundation for future research and interventions aimed at addressing IRI and its associated challenges.
Keywords :
Financial Impact, Gross Variance, Inventory Record Inaccuracy, Net Variance, Warehouse ManagementReferences :
- DeHoratius, N., & Raman, A. (2008). Inventory Record Inaccuracy: An Empirical Analysis. Management Science, 54(4), 627–641. https://doi.org/10.1287/mnsc.1070.0789
- El Hachem, W., Harik, R., & Khoury, J. (2016). Error Generation, Inventory Record Inaccuracy (IRI) and Effects on Performance: A Dynamic Investigation. In R. Harik et al. (Eds.), PLM 2016, IFIP AICT, 492 (pp. 642–651). Springer International Publishing. https://doi.org/10.1007/978-3-319-54660-5_57
- Barratt, M., Kull, T. J., & Anníbal, C. S. (2018). Inventory record inaccuracy dynamics and the role of employees within multi‐channel distribution center inventory systems. Journal of Operations Management, 63(1), 6-24. doi:https://doi.org/10.1016/j.jom.2018.09.003
- Shabani, A., Maroti, G., de Leeuw, S., & Dullaert, W. (2021). Inventory record inaccuracy and store-level performance. International Journal of Production Economics, 235, 108111. https://doi.org/10.1016/j.ijpe.2021.108111
- Rossetti, C., McCormack, K., & LaForme, J. (2007). Cycle counting in warehousing. International Journal of Physical Distribution & Logistics Management, 37(4), 303-323.