RightChain Deployment | Inventory Deployment Optimization

The term cycle counting refers to the practice of counting a small portion of the inventories on a continuing and repeated basis. For example, if inventory consisted of 10,000 part numbers, and the company wants to count each part once a year, 40 parts would be counted every day. This is distinctly different from the physical inventory in which all the parts are counted in a short time period. Cycle counting is sampling. Sampling is a term that has a specific mathematical meaning. It is a technique, in which certain members of a population are selected -- called a "sample" -- and a feature of that sample is measured. It is then inferred that this measurement is a characteristic of the population. The purpose of cycle counting is to: • Find inventory errors so that their causes, not just the errors, can be fixed; and second, • Measure and improve inventory record accuracy. • Improve counting productivity via interleaving.

Contents Cycle Counting Defined