Abstract: A system for inventory loss prediction is provided. The system comprises a processor, a memory, and an application stored in the memory that, when executed by the processor, receives a report associating electronic serial numbers of devices with a plurality of instances of inventory loss. The system also creates a list of device characteristics associated with the devices, creates a list of store characteristics associated with retail stores to which the devices were shipped, and determines a first statistical correlation of a device characteristic to inventory loss. The system also determines a second statistical correlation a store characteristic to inventory loss and predicts, based on the first statistical correlation and the second statistical correlation, a probability of inventory loss.