This measure calculates average inventory accuracy, which is the absolute value of the sum of the variance between physical inventory and perpetual inventory (i.e. inventory that is accounted for on a continuous basis as opposed to discrete points in time). It is part of a set of Process Efficiency measures that help companies optimize the performance of their "operate warehousing" process by minimizing waste and refining resource consumption.
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.