See this informative article published in the Fabricator by Bridget Lazlo, CEO of Guardian Business Solutions, Inc.
How inventory errors lose money at metal fabrication shops
Every dollar of inventory error has a direct impact on profits in manufacturing
For every dollar of error in your inventory, there is a dollar of direct impact on your profitability. It’s hard to believe, but it’s true.
How is this so? Profit is calculated by taking your total sales less the cost to produce, manage, and sell your product. When you value your inventory (known as book value) and you count your inventory (known as count value), every dollar you write up or down to match these two values directly affects your profitability.