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RAD - IRA
Inventory Record Accuracy (IRA) is a measure of quantity-on-hand accuracy in your store and is derived from the RC Count Type (Random Count) on your Count Sheets. Your goal is to sustain 80% (8 out 10 quantity-on-hands match the computer) or better. We're not going to sugarcoat it: getting over Level 1 is hard, but so is trying to operate a busy store with inaccurate inventory.
This help page is designed to help you troubleshoot the IRA metric on the Retail Analytics Dashboard, whether that's because your metric isn't populating or you're looking to achieve 80% or higher.
If your store's Count Sheet Completion is not sufficient to make a good IRA sample then it will be substituted and not display on your Retail Analytics Dashboard.
Steps to correct
In the example below the Random Count completion (44 counted out of 165) is too low to achieve a statistically significant sample. In this case, IRA is estimated by Mango as indicated by an open diamond (IRA substituted) on the IRA (red) trend line. This can happen when a store stops processing their Count Sheets due to a store remodel, staffing change, etc.
In the example below, there is high enough Completion for a good IRA sample, however, there was a mismatch between the sample counted and its expected value. Mango calculates it own internal IRA (based on the percentage of SKUs rung to negative quantity-on-hand at checkout) and compares it to the Count Sheet sample returned. If the mismatch is big enough then it a substitution alert will show and the store's counted IRA will be substituted with Mango's calculated IRA. The substituted sample(s) will be shown as an open diamond in the red IRA trendline. This behavior helps protect stores from measuring an incorrect IRA caused by lack of quantity-on-hand variance research or, in some cases, lazy (lunchroom counts) or "optimistic" counting to pad IRA. Sometimes a validation alert can be caused by other factors.
How to investigate IRA validation issues
The most common reason for IRA substitution is due to a high negative QOH percentage coupled with very high reported accuracy. In the example above, the store reported an accuracy of 96% on the 55 Random Count SKU (53 of 55 with no variance) but is experiencing a high negative QOH percentage, 10%. It's very hard to say you're a store that's 96% accurate but also having so many SKUs go negative.
Research Negative QOH
If the negative quantity-on-hand SKUs all look reasonable then continue to the next step. If there is a lot of noise in your negative QOH's then try to resolve the receiving issue or other store procedure causing the negative QOH's.
Stores struggling with IRA are usually focused too much on counting and "fixing" QOH and focused too little on root accuracy processes such as cashier testing, careful counting and variance research, and high-standards department maintenance. Please review our IRA Checklist and the different steps associated with achieving IRA.