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How Many Counts Will You Need?
The only sure way to know is to start counting and
observe the results. There are too many variables, too little
reliable data and too much effect from selection strategies to
accurately predict the required counts per day. It also depends on
resources and how fast you want results.
The chart at right contains a wealth of information
from very simple data. Every Inventory Accuracy program should have
something similar to monitor progress and identify problems early.
However, the data for such a chart is only available after the
program is operating.
 In
spite of the the difficulties and inaccuracies, we still need
some sort of advance estimate to design the program and
procure resources. One method is to segregate items into the usual
ABC classes and
guess at the annual
count frequency for each
class. The table shows typical ranges.
Another approach is to simulate the system with a
simple spreadsheet based on statistical theory. Our Cycle Count
Estimator uses both approaches.
Strategos Cycle Count
Estimator
Our Cycle
Count Estimator takes the form of an Excel worksheet.
It starts with simple information from past physical
inventories and displays Inventory Record Accuracy for
given cycle count frequencies for two-years. Up to
five scenarios on each display allow comparison of different
cycle count rates, Error Creation Rates or count selection
strategies. Since it does not account for targeting strategies such as
zero-balance counts, actual results are likely to be better
than predicted.
Figure 16 Data Inputs
for Cycle Count Estimator
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