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Current 2D Barcodes RFID 2D + RFID
Defective Items/Yr. 32050 32050 32050 32050
% Under Warranty 15.00% 15.00% 15.00% 15.00%
% Irreparable 10.00% 10.00% 10.00% 10.00%
Items Under Warranty & Irreparable 481 481 481 481
Average Item Value $1,500.00 $1,500.00 $1,500.00 $1,500.00
% Items Returned to Supplier 65.00% 95.00% 99.00% 99.00%
Items Returned to Supplier 312 457 476 476
Items Not Returned 168 24 5 5
Loss Due to Irreparable Defective Items Under Warranty $252,393.75 $36,056.25 $7,211.25 $7,211.25
Figure8.
Warranty Savings
Inventory Accuracy
In this economic analysis, inventory accuracy refers to the difference between system or WMS
database inventory count and the physical inventory count. Hence, inventory accuracy also takes
into account shrinkage. The economic analysis also includes the labor cost associated with
attempting to correct the difference between the system count and the physical inventory count.
As with some of the previous sheets, the first groups of information at the top of the Inventory
Accuracy sheet are Laborer and the associated Hourly Wage as well as AIT
Benefits/Disadvantages and the associated % Difference. Again, the hourly wages and percent
differences are linked to previous pages. Thus a change in these categories on the Returns
worksheet will alter the values on Inventory Accuracy worksheet as well. As with previous
sheets, the cost is calculated for inventory accuracy using the current paper-based process as a
cost for comparison when considering inventory accuracy using AITs.
The first item considered for inventory accuracy is the System Inventory Count row. As
mentioned previously, this refers to the number of items recorded in the system as inventory.
The System Inventory Count is assumed to be the same for all cases considered. Next is
Inventory Accuracy. This value ranges between 0%-100% and represents how close the system
count is to the physical inventory. Hence, 95% inventory accuracy implies that 95% of the items
recorded as inventory in the system are actually in the physical inventory. Typically, depots and
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