Reducing overissues to increase inventory accuracy and minimize impact to Company XYZ's profits

Plan BAnnual inventory audits exposed inventory inaccuracies throughout Company XYZ's production floor. It was then identified that overissues were a major reason for the inventory inaccuracies and the overissues that caused inventory inaccuracies had a negative impact on Company XYZ's profits. Looking to reduce or eliminate overissues this study used overissue data from Company XYZ's enterprise resource planning system to analyze the locations in which overissues were created and the top 15 component part numbers that crated the most overissues. Two conclusions were identified; first, it was found that processes were not being followed, even though work instructions did exist, which then lead to inaccurate inventory and overissues. Second, it was that the enterprise resource planning system stocking location and bill of material locations were set up correctly so the overissues were being caused by the physical inventory not matching the system inventory. While the overissues were reduced by actions taken, the goal of increasing inventory accuracy by 5% during the study was not realized