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Siebel Field Service Guide > Cycle Counting and Replenishment > Cycle CountingCycle counting is a method of counting inventory by grouping products into classes and counting the products in each class at designated intervals over a period of time. Only part of the products are counted at one time, but over the designated time period all products are counted. Products of class A, for instance, might be counted once every three months, products of class B once every six months, and products of class C once a year. Since assets are moving in and out of inventory, cycle counting creates a dynamic, statistical view of inventory. To enhance statistical accuracy, cycle counting uses two methods of product classification (the cycle count basis): ABC and XYZ.
Cycle counting is configured for inventory location types, inventory locations, and products. NOTE: If a configuration parameter for cycle counting can be set at different levels, the parameter for the more specific level takes precedence. For example, the cycle count basis (ABC or XYZ, meaning cycle counting based on the value of items versus their turnover rate) for an inventory location takes precedence over that for an inventory type. The cycle count class, A, B, or C; X, Y, or Z (meaning that it has high, medium, or low relative value or turnover rate), for an inventory type takes precedence over that for a product. The Cycle Counting Engine requires this input:
Whenever the Cycle Counting Engine runs, it produces the following output:
The Cycle Counts screen, Part List view accepts manual input of the count data. The Cycle Counting Engine compares this to the inventory records in its database, and, if there is a variance, allows for an adjustment of inventory. Figure 18 illustrates the decision path that the Cycle Counting Engine uses to generate a parts lists. In following the decision path, the Cycle Counting Engine goes through the following steps:
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