Cycle Count - Dangers

Dangers

Cycle counts can introduce inventory errors if the cycle count process is poorly executed. Multiple locations per item, work in process, and lag in paperwork processing can each contribute to errors. This problem can be mitigated with correct cycle count procedures that specify not only the part number to be counted but also the location it should be in. Cycle counting is only effective in companies with a well-defined inventory control procedure and a high degree of inventory accuracy.

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