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Configuration of the Cycle Counting Engine
The Cycle Counting Engine generates cycle counting headers and cycle counting part lists by using the configuration information from the Cycle Counts view. For more information, see Cycle Counts View.
Cycle counting uses these configuration parameters:
- ABC or XYZ count basis. The method used for cycle counting of an inventory location: ABC = financial value basis, XYZ = turnover basis.
- A, B, or C classification. The classification of products based on the financial value of an item, where A > B > C.
- X, Y, or Z classification. The classification of products based on the turnover of an item, where X >Y >Z.
A product receives any combination of class A, B, or C and X, Y, or Z; for example, AY. However, cycle counting is based on either ABC or XYZ, not both.
- Frequency. The interval in days between physical counts of inventory at a location; for example, if counting frequency is 7 days, inventory is counted every seven days.
- Period. The time period in days allotted to counting all A or X, B or Y, or C or Z class items at this location. For example, if the counting period for class A or X products is 90 days, the Cycle Counting Engine makes sure that all the products in this class are included in the part list at least once every 90 days.
- Start Date and End Date. The time span in calendar days during which the Cycle Counting Engine will create cycle count records.
Here is an example of a cycle counting scenario:
An inventory location is configured to count on a financial value basis (ABC). There are approximately 100 A-class products in inventory. Every five days (Frequency = 5 days) someone spends as much time as needed to count one-quarter (5/20) of the A-class items, with the goal of counting all of the A-class items within 20 days (Counting Period A/X = 20 days). Counting periods do not have to be even multiples of frequency.
Configuration Information for the Cycle Counting Engine
Configuration of cycle counting takes place at several levels, on different screens (see Table 106).
NOTE: If a configuration parameter can be set at different aspects of inventory, the parameter for the more specific aspect takes precedence. For example, the count basis (ABC or XYZ) at an inventory location takes precedence over the basis specified for an inventory type. The cycle count class (A, B, or C; X, Y, or Z) for an inventory type takes precedence over that for a product.