The approach to cycle counting is based on the ABC codes setup with the System setup. No matter how the ABC codes are assigned, they are used for the cycle count the same way.
When the cycle count button is activated, these events take place:
- A list of part numbers and AVLs is created for each ABC code. Presumably, the list is long for C (low cost) parts and short for A (high cost) parts.
- The parts in each list are reviewed for last count date, and any parts with the last counted days less than the cycle count days is removed from the list.
- For each list, the number of remaining parts is divided by the number of work days the cycle count frequency is for the ABC code, resulting in the number of parts per day to be counted for each ABC code.
- From each ABC list, parts are randomly selected until the number of parts per day quantity is reached. Those parts are then cycle counted. They stay on the cycle count list until they have been counted and/or reconciled. When reconciled, the date completed is the new last counted date.
- Each day, the user should create the cycle count worksheet, and clear them as soon as possible. Parts on the list are frozen until counted and reconciled. Parts not reconciled will remain on the list until they are dispositioned, so a list may get quite long if it is not attended to quickly.
For example, lets say that A parts have a 30 day cycle, B parts a 90 day cycle and C parts a 180 day cycle. Let's say there are 500 A parts, 2,000 B parts, and 15,000 C parts.
- Then 17 A parts, 22 B parts, and 83 C parts should be counted each day.
- At the fifth day, 85 A parts, 110 B parts, and 415 C parts would be counted, leaving 415 A parts, 1,890 B parts, and 9,585 C parts uncounted.
- On this day, we would have to count 13 A parts, 21 B parts, and 54 (9,585/180) parts.
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