IRDR

Inventory Record Defect Ratio (IRDR) is a key performance indicator within Amazon’s Fulfillment by Amazon (FBA) and supply chain operations. It shows the percentage of inventory units with discrepancies between what Amazon’s system expects and what is physically available.

An IRDR above Amazon’s threshold can trigger:

• Investigation into inventory accuracy
• Reduced inventory trust
• Operational or financial penalties for vendors or warehouse partners

Typical causes of IRDR issues:

• Incorrect unit counts at check-in
• Mis-scanned or mislabeled items
• Damage, shrinkage, or theft
• Inaccurate shipment details from vendors or sellers

IRDR formula (simplified):
IRDR = (Defective Inventory Records ÷ Total Inventory Records) × 100

Why IRDR matters:

• A low IRDR means high inventory accuracy, which supports better availability, faster fulfillment, and fewer customer complaints
• A high IRDR can result in stockouts, Buy Box loss, and storage limits

💡 Example: If a vendor sends 1,000 units but Amazon records only 970, the discrepancy contributes to the IRDR - and may lead to chargebacks or receiving audits.

In short:
IRDR measures how accurately recorded inventory matches what Amazon physically has - a critical metric for maintaining inventory trust and fulfillment reliability.