What is the number of cycles?

The number of cycles is the inventory management procedure in which workers count only part of the company's inventory as representation of the entire inventory. This allows a relatively accurate reproduction of a complete number of stocks in mere fraction of time. The best time for the company to make the number of cycles is sometimes different than normal working hours, because supplies are most stationary at the time. There are many methods that companies can use to carry out such numbers such as counting certain parts of the inventory at regular intervals or setting up the frequency of the number of items that represent most of the sale. If the real inventory does not match what business records show, the company could have a sudden shortage or unnecessary surplus. The stock control standard is a complete number of stocks at least once a year, but this leaves a long range of time in which the stock levels can be inaccurate. The number of cycles is one way to operate this situation.

The concept of the number of cycle is similar to the theory of typical survey. When the survey is carried out, a small part of the population speaks for the whole population with a span of error that is included in the qualification of the results. When carrying out partial inventory checks, the company can reach the level of the entire inventory without performing a big task to calculate each item in stock.

One way to make the number of cycles is to make a geographical number of stocks. This requires certain parts of the warehouse to be completely counted at regular intervals throughout the year. Although some inventory items are moved to different parts of the warehouse, these discrepancies are generally exported through the course of regular checks. The accuracy of the geographical method depends on the accuracy of the number of specific areas.

Another popular method used by companies to carry out the number of cycle is to evaluate items in the inventory in terms of sales weight. In other words, a small percentage of items in the InveNtáři often represents a large percentage of sales. These items should be calculated on the half -order. For the same reason, it is likely that a large percentage of inventory actually accounts for only a small part of the sales of the company. To improve efficiency, this large, relatively ineffective part of the inventory should be calculated only in rare cases.