Apparatus and method of maintaining accurate perpetual inventory information

An inventory apparatus for use in managing product inventory, comprising:

• a control circuit of a retail store inventory system;
• a memory coupled to the control circuit and storing computer instructions that when executed by the control circuit cause the control circuit to perform the steps of:
• for each of multiple different products at a retail store:
• obtain, through the retail store inventory system, a reference on-hand quantity value for a product providing a reference quantity of the product;
• determine an estimated on-hand adjustment value of the product corresponding to a predicted error between the reference on-hand quantity value and a predicted actual on-hand value at the retail store;
• receive a retail store supplied on-hand adjustment value;
• set an on-hand adjustment value to the retail store supplied on-hand adjustment value when the retail store supplied on-hand adjustment value is within an on-hand variation threshold of the estimated on-hand adjustment value;
• modify the estimated on-hand adjustment value as a function of a difference between the retail store supplied on-hand adjustment value and the estimated on-hand adjustment value when the retail store supplied on-hand adjustment value is not within the on-hand variation threshold of the estimated on-hand adjustment value, and set the on-hand adjustment value to the modified estimated on-hand adjustment value;
• and
• calculate a final adjusted on-hand value of the product as a function of the on-hand adjustment value, wherein the final adjusted on-hand value is configured be utilized in enhancing ordering additional items of the product to restock the retail store.