Professional Documents
Culture Documents
Prepared By:
Jaime Johnson
Boise State University
Spring Semester 2003
Training Overview
• What is Cycle Counting?
– Advantages
– Methods
• Learning the Concepts
• Can it Work for You?
• Exercise Problem
• A Real World Example
• Wrapping it Up
What is Cycle Counting?
• Definition:
– “a method for auditing inventory
accuracy and reconciles errors on
a cyclical schedule rather than
once a year.”
– A dynamic inventory audit that
allows for real time accuracy of
inventory items.
Advantages
• Accurate Inventory Records
– Errors and their Causes can be
Identified quickly and Corrective
Measures can be Implemented
• Good Bye Annual Inventory
• Allows for Continuation of
Business and Production
Methods
• The Geographic or Block Method
Scheduling Example:
• Jan. “A” Items • July “A” Items
• Feb. “B” Items • Aug. “C” Items
• Mar. “A” Items • Sep. “A” Items
• Apr. “C” Items • Oct. “D” Items
• May “A” Items • Nov. “B” Items
• June “B” Items • Dec. “A” Items
The Ranking Method
(5 of 5)
• Which Method?
• Methods Include
– The Geographic or Block Method
– The Ranking Method
– Random Sample Cycle Counting
Wrapping it Up!
• Cycle Counting can Assist in
Avoiding Costly Mistakes