An ABC analysis determines the relative value of a group of inventory items based on a user–specified valuation criterion.
ABC refers to the rankings you assign your items as a result of this analysis, where ”A” items are ranked higher than ”B” items, and so on. You can optionally use the ABC analyses you compile to drive your cycle counts, where you might count items of high value (A items) very frequently, items of lower value less frequently, and items of lowest value very infrequently.
Steps Involved in ABC Analysis
- Define ABC
classes.
- Define and run
an ABC compilation.
- Define
Assignment groups.
- Assign items to
ABC classes within a group.
- Update item
assignments.
- Purge ABC
information.
Cycle counting is the periodic counting of individual items throughout the course of the year to ensure the accuracy of inventory quantities and values. Accurate system on–hand quantities are essential for managing supply and demand, maintaining high service levels, and planning production.
You can perform cycle counting instead of taking complete physical
inventories, or you can use both techniques side–by–side to verify inventory
quantities and values. Inventory supports serialized cycle counting, and the
following chapters discuss the steps involved.
Overview of Cycle Counting & Serialized Cycle Counting
1. Defining and Maintaining a Cycle Count
2. Cycle Count Items & Defining Cycle Count Items
3. Cycle Count Scheduling
Generating Automatic Schedules
Entering Manual Schedule Requests
4.1 Count Requests
Count Requests for Items with Zero Count
Generating Cycle Count Requests
Requesting the Cycle Count List
4.2 Entering Cycle Counts
4.3 Approval Options and Tolerances
Count Adjustments and Approvals
Approving Cycle Count Adjustments
5. Purge Cycle Count
1 comments
Hi there, I enjoy reading all of your article.
ReplyDeleteI like to write a little comment to support you.
Have a look at my blog marketing training