What factor is used to determine if a discrepancy is consequential or inconsequential?

The determination of whether a discrepancy is consequential or inconsequential largely depends on its dollar value. In logistics and supply chain management, the financial implications of a discrepancy serve as a key metric for assessing its significance. If the dollar value associated with a discrepancy is substantial, it is likely to be treated as consequential due to its potential impact on the overall budget, profit margins, or operational costs. Conversely, if the discrepancy involves a minimal dollar value, it may be deemed inconsequential, suggesting that the potential loss or impact is negligible enough that corrective action may not even be warranted. This financial perspective helps ensure that resources are allocated effectively in managing discrepancies, focusing on those that truly affect the bottom line.