What does an "exception report" signify in inventory management?

An "exception report" in inventory management is primarily used to identify discrepancies between expected and actual stock levels. This type of report highlights variances that may arise due to a number of factors such as theft, misplacements, or errors in data entry. By generating exception reports, inventory managers can quickly pinpoint areas that require attention, allowing them to investigate further and take corrective actions to maintain accurate inventory records.

The role of an exception report is crucial as it ensures that inventory management remains efficient, and it helps in detecting issues before they escalate into more significant problems. Other types of reports, like those detailing minimum levels, inventory age, or financial expenditures, serve different functions within inventory management but do not focus specifically on highlighting discrepancies.