TABLE OF CONTENTS The preceding cycle count activities should be documented in the form of a process map and standard operating procedures describing the exceptions to the procedures and how the cycle counter should deal with these exceptions. This becomes a helpful tool in instructing new cycle counters and maintaining consistency with experienced ones.
When computer-driven cycle count formats are not available in the business system software to count A, B, and C items periodically, spread- sheet versions are often developed. As stated earlier, some organizations periodically designate areas to be counted completely, resulting in the same frequency of counts as would an ABC setup. For example, some warehouses are counted twice a year by having X number of locations counted each day starting on the east side and working toward the west.
Other ways to determine cycle count items/locations that are less desirable are listed below. They are less desirable because predictability of count frequency is less scientific. However, these are acceptable alternatives when computer help is not easily available. Examples of these are:
When reorder is needed, cycle count the existing location if there is one. If not, verify zero balance.
When a replenishment order is received, cycle count the existing location if there is one. If not, verify zero balance.
When the balance is at zero, check if a location is still listed. If there is a location, cycle count it.
When a record is negative, this should always be cycle counted since it is obviously wrong. This is...
