Inventory Counts Research Articles

The impacts of inventory record inaccuracy and cycle counting on distribution center performance

Paper aims The objectives of this paper are: (i) to analyze the impacts of Inventory Record Inaccuracy (IRI) on picking productivity (PP), lost sales (LS), and warehouse capacity utilization (WCU) for different warehouses; (ii) verify if the Cycle Counting (CC) implementation is sufficient to reduce IRI and (iii) the number of CC operators to maintain warehouse performance. Originality A causal loop diagram in detail of the IRI and CC variable's effects in receiving and picking processes is developed. IRI is separated into ghost and hidden inventory to represent the actual effects in WCU, LS, and PP. Research method A dynamic system model is built. Simulations are performed for the five categories of warehouse performance with different numbers of CC operators. Main findings IRI impacts in all warehouses simulated, so managers should monitor IRI besides employee productivity. CC can reduce IRI in all types of warehouses. The number of CC operators to be implemented is different for each warehouse. Implications for theory and practice Several implications for theory and practice are discussed. For example, IRI impacts more ADV and BIC warehouses without CC implementation. In TYP, ADV, and BIC warehouses CC is sufficient to reduce IRI. In MO and DIS warehouses, other improvements are needed.

Research on Optimization of Warehousing System Based on Analytic Hierarchy Process and Order Index Method

This paper discusses the issues of how to improve the systematic problems such as unreasonable warehouse layout, non-standard warehousing operation, incorrect inventory counting method, and imperfect warehousing information. The Analytic Hierarchy Process is adopted to analyze the factors affecting the picking efficiency, while the Cube-Order Index (COI) is for optimizing the storage location, which is planned according to the turnover rate of the goods. It tries to figure out the future development trend of the warehouse management and how to improve the efficiency of the warehouse operation for improving the competitiveness of enterprises.

Analysis of Accounting Information Systems for Raw Materials and Finished Goods

This study aims to analyze the Accounting Information System for Raw Materials and Finished Goods at PT Berkat Ganda Sentosa Pasuruan. The research approach used is the qualitative approach. The research method used is descriptive method. The data collection method used interview, documentation and observation. The interview method was used to seek in-depth information by asking questions to the company staff and academic experts. The documentation method is carried out to support and strengthen the data in research. The observation method is carried out to record information and activities that occur during field research. In this research, using data analysis techniques such as data reduction, data presentation and data verification. The results of this study indicate that the Raw Material Inventory Accounting Information System at PT. Berkat Ganda Sentosa, this is done well but is still manual, with procedures starting from purchasing to receiving inventory, purchase returns, demand and release of warehouse goods, use of raw materials and also physical inventory counts. All these procedures are carried out with the aim that the mutation of raw material inventory can be controlled easily which consists of various functions with their respective duties and responsibilities along with the completeness of documents that can be accounted for. The structure of the implementation of an Accounting Information System for raw material inventory of PT Berkat Ganda Sentosa Pasuruan includes functions related to AIS, documents and records used as well as a network of procedures that can form an Accounting Information System.

RFID software-based shielding: Implementation of further approaches under varying surrounding conditions

Given the promising results obtained by the Software-Based Shielding (SBS) in our previous work entitled “Software-based shielding for real-time inventory count in different store areas: a feasibility analysis in fashion retail”, in this paper, we go into more detail by exploring the effect of certain surrounding aspects, such as (i) the partition wall, and (ii) the density of tags. We also propose alternative algorithms other than logistic regression analysed in the previous work –i.e., a heuristic algorithm, a Neural Network (NN), a Convolutional Neural Network (CNN), and the introduction of reference tags to enhance these approaches. The results show that the logistic regression and the CNN are the most accurate models. The choice between them might depend on the application context: the first is less reliable but much simpler to implement, while the second is a more complex and complete machine learning model. Concerning the environmental conditions, the density and disposition of RFID tags appear the aspects with the greatest impact.

RFID gaining ground in health systems, says ASHP report

A March 2022 report published by the American Society of Health-System Pharmacists asks readers to “imagine a pharmacy where the inventory count is always correct, it automatically increments as orders are received and decrements as orders are filled” and the impact this would have on “budget, inventory management, patient care and overall workload.”

THE STUDY GROUPS TO PISTACHIA LENTISQUE PHYTOECOLOGIQUE IN ALGERIA: CASE OF THE FOREST OF TAMEDRARA IN CHLEF

This work is devoted to the study of a Pistachier Lentisque group for the Tamedrara forest; it is an integral part of the Tell Atlas mountains located south of the wilaya of Chlef. It is an original study carried out by a phytoecological approach whose plant formations encountered offered a great diversity. To give the state of the plant cover currently existing in this forest, results were obtained in the taxonomic, biological, morphological and biogeographical aspects. The floristic inventory counts 66 species, divided into 51 genera and 25 families generally represented by Asteraceae, Fabaceae, Lamiaceae, Poaceae and Liliaceae. The recorded observations allow us an area degraded by free grazing, repeated fires and ecotourism and therefore requires a program of forestry interventions in order to preserve this phytogenetic heritage at the level of the Tamedrara forest.

ANALISIS SISTEM INFORMASI AKUNTANSI PERSEDIAAN BAHAN BAKU DALAM KELANCARAN PROSES PRODUKSI DI MASA PANDEMI

Accounting information system or (AIS) is a system designed to collect and display accounting information so that accountants and company executives can make appropriate decisions and have the aim of processing evidence of recording and reporting all information related to all financial transactions, documents or accounting records. There are several important functions in a working group on accounting information systems, including: storing and collecting data about work activities. Not only that, the information system can also be used to process and transact data into information that can be used to properly control and process decisions related to assets in the organizational system. Omah Teh Nganjuk business which is located on Jl. WR Supratman No.6, Mangundikaran, Mangun Dikaran, Kec. Nganjuk, Nganjuk Regency is the object that we choose in this research. Omah Teh Nganjuk is a family business brand engaged in packaged food and ready-to-drink beverages. Nganjuk tea is an herbal tea made from black tea, green tea, roselle flowers and jasmine flowers which are mixed and combined to make fresh drinks and are useful for health. This study aims to provide information about the accounting information system for raw materials inventory in the Omah Teh Nganjuk business. This research uses qualitative research methods, for data analysis techniques using descriptive analysis with a qualitative approach. Data collection techniques in conducting this research are interviews and observations. Based on the results of the analysis, the implementation of the accounting system for Omah Teh Nganjuk's raw material inventory is very good. The method of determining the cost or inventory cost can also be applied to the company, by choosing the first-in, first-out method. In the smooth production contained in the raw material inventory system in the Omah Teh Nganjuk business, more emphasis is placed on physical inventory counting in order to be able to make fictitious records on the warehouse book, with the separation of functions it can also speed up the production process

Automated Dispensing Cabinet Functionality Expansion to Reduce Controlled Substance Inventory Discrepancies.

Automated dispensing cabinets have the potential to create technology-induced errors that can arise during controlled substance medication dispensing. Despite enhancements made to the medication use process, the impact of ADC functionality on technology-induced controlled substance discrepancies have yet to be described. To evaluate the impact of ADC functionality expansion on technology-induced errors such as controlled substance discrepancies created during "blind inventory counts" and cassette dispensing errors. This quasi-experimental study was conducted over 18 months that evaluated the expanded use of dispensing cassettes within 8 ADCs at the University of Chicago Medicine. Unit-dose controlled substances with high usage were directed for inventory reassignment to cassettes. Controlled substance dispenses, blind inventory counts discrepancies and cassette dispensing errors were evaluated before and after cassette expansion. ADC discrepancy and Cassette Dispensing Error rates were calculated using 1-week segments across the study period. Of the 64 040 dispenses during the study period, the proportion of cassette dispenses increased from 16% to 72% after cassette expansion. Controlled substance discrepancies decreased from 11 to 7 discrepancies for every 1000 dispenses (P < .0001). After cassette expansion, cassette dispensing errors increased to roughly 28 errors for every 1000 dispenses (P < .0001). Expansion of ADC functionality created opportunities for reduced technology-induced controlled substance discrepancy rates at the expense of increased cassette dispensing errors.

Strategies implemented for accurate dispensing of an investigational new drug in a multi-site HIV prevention clinical trial

Safe practices for dispensing investigational product (IP) during clinical trials are not standardized and information in this regard is often limited. ASPIRE was a Phase 3 safety and effectiveness trial of a vaginal matrix ring containing 25 mg of dapivirine for the prevention of HIV-1 in women. The study enrolled 2629 women at 15 clinical research sites in Malawi, Uganda, South Africa and Zimbabwe who were randomized in a 1:1 ratio to receive either a vaginal ring containing 25 mg of dapivirine or a matching placebo vaginal ring. The vaginal rings and packaging were identical in appearance in order to maintain the study blind. A real-time, documented second check of the dispensing process was conducted by a second pharmacy staff. Frequent inventory counts and real time accountability audits were also useful for rapidly identifying a dispensing error. A total of 52,625 vaginal rings were dispensed with only three documented pharmacy dispensing errors. There were zero dispensing errors at 13 of the 15 sites with an overall rate of <1.0 per 10,000 rings dispensed. Our study findings support the implementation of a double check dispensing process and real time accountability audits as standard practice in clinical trials.

Analysis of Internal Control System of Trade Goods in Minang Motor Sport Stores Bengkulu City

The research objective was to determine the internal control system for merchandise inventory at the Minang Motor Sport Store, Bengkulu City. The data collection method in this study is to use the interview method. The analytical method used is descriptive analysis with a comparative type. The results showed that there was no match between Mulyadi's (2016: 488) theory and the conditions that occurred at the Bengkulu City Minang Motor Sport Shop for organizational elements, because according to Mulyadi's theory, physical inventory counting had to be carried out by a special committee formed apart from warehouse employees. . Meanwhile, what happened at the Minang Motor Sport Store, Bengkulu City, the physical count was carried out directly by the warehouse department. For the elements of the authorization system and the recording procedure of the conformity and discrepancy between Mulyadi's theory (2016: 488) and the Minang Motor Sport Store in Bengkulu City, the discrepancy is in the list of physical inventory count results signed by the chairman of the physical inventory counting committee and the recording of the physical inventory count results is recorded. the correctness of the physical counting card that has been verified. There is compatibility between Mulyadi's (2016: 488) theory with the Minang Motor Sport Store in Bengkulu City for elements of healthy practice, because at the Minang Motor Sport Store, Bengkulu City, the physical counting of merchandise inventory cards has been numbered sequentially, inventory checking has been carried out twice by the department. inventory counters and subsequently by inventory checkers.

Software-based shielding for real-time inventory count in different store areas: A feasibility analysis in fashion retail

RFID is an established technology and its implementation has been increasing steadily in different industries in the last decades. An important and relatively recent RFID breakthrough has been that of moving the level of tagging from pallet- or case-level, to item-level. This development has opened up a new set of use cases and benefits, especially in retail. One of these new use cases is the estimation of items’ location by positioning and tracking the tags attached to them. This problem is often seen as a classification problem, especially when tags that are read at the retail store must be located either in the sales floor or in the backroom area. The typical approach to ease this classification consists of physically shielding the interested areas via hardware installations, although this solution is expensive and lacks flexibility. In this paper, we present a different solution, namely a software-based shielding approach, to address the classification problem. Our solution makes use of item-level RFID tags and is based on the well-known logistic regression. Whenever a reading session is performed by means of a handheld reader, the classification model estimates in real-time (i.e. within a few seconds) which tagged items are in the same area of the reader and which are not, with no need of any shielding hardware installation. According to the validation preliminary tests presented in this paper, in which we simulated a fashion retail store, the proposed approach has an overall average accuracy of 95.5%.

Point-of-use hospital inventory management with inaccurate usage capture

Many hospital supply chains in the US follow a “stockless” structure, often implemented with the acquisition of new systems promising improved efficiencies and responsiveness. Despite vendor promises, supply chain gains from new technology are often unfulfilled or result in a reduction of performance. A critical component of achieving promised gains is the hospital’s ability to accurately and consistently capture hospital inventory use. In practice, recording demand with perfect, 100% accuracy is infeasible, so our models condition on the level of accuracy in a particular hospital department, or point-of-use (POU) inventory location. Similar to previous literature, we consider actual net inventory and recorded net inventory in developing the system performance measures. We develop two models, optimizing either cost or service level, and we assume a periodic-review, base-stock (or par-level) inventory policy with full backordering. In addition to choosing the optimal order-up-to level, we seek the optimal frequency of inventory counts to reconcile inaccurate records. Results from both models provide insights for supply chain managers in the hospital setting, as well as hospital administrators considering the adoption of similar technologies or systems.

Estimated Revenue of the Nonprofit Homeless Shelter Industry in the United States: Implications for a More Comprehensive Approach to Unmet Shelter Demand

ABSTRACT This study merged data from the 2015 Housing Inventory Count, a list of temporary housing programs serving homeless persons nationally, and the Internal Revenue Service Form 990 tax filings for nonprofit organizations that same year. Matching records were used to develop estimates of various organizational measures per bed, adjusting for outliers, including revenues by source, expenditures by type, number of employees, employee compensation, and number of volunteers. Average values of these measures per bed by program type and by target population were extrapolated to the overall inventory to generate sector-wide estimates. Based on various measures of central tendency and after addressing outliers, a best guess of total revenues for nonprofit temporary housing providers is estimated at approximately $8.5 billion in 2015. As many as 160,000 people are employed by nonprofit shelters, or 0.4 persons per bed, with average annual compensation of approximately $24,000. Universal bed coverage for unsheltered persons is estimated to cost an additional $3.3–$4.5 billion annually.

Prepare for takeoff: improving asset measurement and audit quality with drone-enabled inventory audit procedures

Auditors increasingly employ technologies to improve audit quality. Using a design science approach, we examine whether using drones and automated counting software can improve audit quality and thus financial reporting. We assess three dimensions of audit quality—efficiency, effectiveness, and quality of documentation. We show that auditors can perform inventory counts with these technologies much more efficiently than they can with manual techniques, decreasing count time in our study from 681 h to 19 h. Similarly, auditors can maintain or improve audit effectiveness, decreasing error rates in our study from 0.15% to 0.03% while providing higher-quality audit documentation. Interviews with national-level partners and audit standard setters highlight impediments to adopting these technologies, including firm concerns about being first movers combined with inability of standard setters to provide guidance at a pace that matches the pace of technological development. Collectively, our results suggest that technology-enabled inventory audits can improve audit quality and further regulatory guidance on using such technologies would enhance adoption.

A Plan-Do-Check-Act Based Process Improvement Intervention for Quality Improvement

Waste from raw materials has a direct influence on the final price of a product. However, since waste has no added value to products, customers are unwilling to pay for it. Reducing waste along the production process and supply chain allows companies to decrease costs and remain competitive in product prices. This research is conducted in a medical device manufacturing company located in Tijuana (Mexico). The company found a negative variation in part number 9540, a metallic foil used for hot stamping. During inventory cycle counts, the company found that they were purchasing rawer material than necessary due to a 50% of waste generated along the production process. We implemented two process improvement methodologies, namely Practical Process Improvement (PPI) and the Plan-Do-Check-Act model, to eliminate 100% of the raw material waste, specifically regarding the foil’s waste. The improvement project comprised two phases: a) adjusting the parameters of the hot foil stamping machine and b) replacing the hot foil stamping machine with a pad printing machine. In our research, the PPI methodology is presented in 8 detailed stages as a simple problem-solving method, in contrast with five stages reported in other documented cases. This case study presents how a company can apply continuous improvement programs and its managerial implications, even without having a structured and defined systems for quality, such as Six Sigma or Lean Manufacturing implemented. After the two implementation phases, the improvement project led to economic savings of $\$ $ 165,000 in a year.

FORMATION OF THE ACCOUNTING POLICY OF THE ENTERPRISE IN THE CONTEXT OF ENSURING EFFECTIVE INVENTORIES MANAGEMENT IN THE PROCESS OF INNOVATIVE ACTIVITY

The article considers the issues of organization and formation of inventory accounting policy, substantiates its role in the system of information support of inventory management processes and highlights the impact on the effectiveness of inventory management in the process of innovation activity. Based on the study of trends in the share of inventories of industrial enterprises and indicators of innovation development, it is established that inventories are not currently considered as a resource that has a significant impact on the innovation potential of the enterprise, and in combination with financial performance indicates inefficient investment in inventories and inefficient inventory management. It is proved that it is possible to increase the efficiency of inventory management due to the optimal organization of the inventory accounting system, the foundations of which are laid during the formation of accounting policies. The author's approach to understanding the accounting policy in the sphere of inventory accounting, which is considered as a set of principles, methods and procedures used by the company to generate quality, timely, relevant, clear, complete and reliable information about the availability, movement, storage and use of inventories, sufficient to make management decisions aimed at improving the efficiency of inventory management and disclosure of inventory information in the financial statements. Coverage of approaches to the formation of accounting policy is based on a combination of organizational, technological and methodological components of accounting policy. The first (organizational and technological) component includes such elements as: inventory principles, laws and regulations concerning accounting of inventories, forms of primary documents and internal management reporting used for inventory accounting, document management rules and accounting information processing technology, control procedures on the movement of inventories and the responsibility of officials, the procedure and frequency of revaluation of inventories and inventory count, the order of analytical inventory, the unit of natural measurement of inventories for each unit of accounting, the interaction of accounting with other services during the transfer and exchange of inventory. The second component (methodological) reveals the principles and rules of receipt, processing, recording and transmission of inventory information, inventory valuation rules, inventory accounting (development of a working plan of accounts), disclosure of inventory information in the financial statements. It has been considered such main elements of organizational, technological and methodological components: features of the work plan of inventory accounts, the issue of documentation of inventory transactions, the recognition of inventories and their evaluation, document management rules, accounting for transport and procurement costs. Variable elements of inventory accounting policy are identified.

Auditing Techniques to Avoid Cost Accounting Frauds

Today, we observe the importance of accuracy of financial statements in every corporation. Accounting scandals have caused important losses both in the macro and micro levels. This issue proves the significance of financial statement accuracy. This accuracy is provided by the trust environment. Therefore, it is necessary to provide the required environment of confidence for financial markets to improve and function effectively against increasing accounting frauds gradually. That can only be possible by using different auditing techniques, running inventory counting such as cash and stock, establishing strong internal controls, managing efficiently and benefiting from technology integrated auditing. The aim of this study is to investigate the most effective auditing techniques to avoid cost accounting frauds. In this research, the most effective auditing techniques for detecting and preventing fraud are investigated by using the case analysis method. Also, the well known scandals related with Olympus, Worldcom, Tesco, Sunbeam and Parmalat companies are examined as a part of the case analysis. Finally, recommendations and suggestions regarding fraud prevention methods are presented.

Woodpecker cavity establishment in managed forests: relative rather than absolute tree size matters

What kind of tree should be preserved from logging for biodiversity conservation is a matter of debate. Large and old trees are potential candidates due to the structures they can bear, like cavities and other tree-related microhabitats (TreMs). One of the most studied TreM is woodpecker-made cavities, which, in addition to be breeding sites for primary cavity-nesters, are often the main breeding sites for secondary cavity-nesters, especially in managed forests. Therefore, understanding which trees woodpeckers select for cavities is relevant to forest management, especially in management regimes where individual trees are logged or spared, as in retention forestry. We used data from a forest inventory, TreM inventory and woodpecker counts in one-hectare plots in the Black Forest (southwest Germany) to investigate which features make a retention tree suitable for woodpeckers. By employing a resource selection probability function, we tested several variables for their influence on the probability of tree choice by woodpeckers including altitude, tree species, TreM richness and abundance, diameter at breast height (DBH) and deviation from the mean DBH per plot. The results show that the probability of selection by woodpeckers does not correlate with individual tree diameter. Instead, the probability is driven mainly by the deviation from the mean DBH per plot. We were able to identify a relative size for the selection of trees indicating that woodpeckers prefer trees that are about 15–20 cm larger than the mean DBH per plot. Thereby, we argue, that using absolute diameter thresholds to select retention might not be the best management solution in the short-term, as in managed forests woodpeckers might select sub-optimal trees. Apparently, more knowledge concerning relative thresholds, as detected in our study, is required to improve our understanding of the potential ecological value of retention trees.

Unmanned Aircraft System (UAS) Technology and Applications in Agriculture

Numerous sensors have been developed over time for precision agriculture; though, only recently have these sensors been incorporated into the new realm of unmanned aircraft systems (UAS). This UAS technology has allowed for a more integrated and optimized approach to various farming tasks such as field mapping, plant stress detection, biomass estimation, weed management, inventory counting, and chemical spraying, among others. These systems can be highly specialized depending on the particular goals of the researcher or farmer, yet many aspects of UAS are similar. All systems require an underlying platform—or unmanned aerial vehicle (UAV)—and one or more peripherals and sensing equipment such as imaging devices (RGB, multispectral, hyperspectral, near infra-red, RGB depth), gripping tools, or spraying equipment. Along with these wide-ranging peripherals and sensing equipment comes a great deal of data processing. Common tools to aid in this processing include vegetation indices, point clouds, machine learning models, and statistical methods. With any emerging technology, there are also a few considerations that need to be analyzed like legal constraints, economic trade-offs, and ease of use. This review then concludes with a discussion on the pros and cons of this technology, along with a brief outlook into future areas of research regarding UAS technology in agriculture.

Prepare for Takeoff: Improving Audit Efficiency and Effectiveness with Drone-enabled Inventory Audit Procedures

Auditors increasingly employ technologies to improve audit quality. Using a design science approach, we examine whether using drones and automated counting software can improve audit quality and thereby improve financial reporting. We assess three dimensions of audit quality—efficiency, effectiveness, and quality of audit documentation. We provide evidence that auditors can perform inventory counts with these technologies much more efficiently than they can with manual techniques, decreasing count time in our study from 681 hours to 19 hours. At the same time, auditors can maintain or improve audit effectiveness with these technologies, decreasing error rates in our study from 0.15% to 0.03%, while providing higher-quality audit documentation. Interviews with national-level partners and audit standard setters highlight impediments to adopting these technologies, including firm concerns about being first movers combined with inability of standard setters to provide guidance at a pace that matches the pace of technological development. Collectively, our results suggest that technology-enabled inventory audits can improve audit quality, and further regulatory guidance on using such technologies would enhance adoption.