Inventory Accuracy - Inventory Turns

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Inventory Record Accuracy
A common calculation is:
Stratify SKU's: (annual usage X standard cost)
A items= items representing the top 80% of total dollars
B items= items representing the next 15% of dollars
C items= items representing the bottom 5% of dollars
Cycle count items (usually daily) using a random sample, within the following groupings:
A items = 4 times per year
B items = 2 times per year
C items = 1 time per year
Items considered accurate if the actual on-hand quantity matches the perpetual inventory quantity, within the following tolerances:
A items = plus or minus 1% quantity variance from perpetual balance
B items = plus or minus 3% quantity variance from perpetual balance
C items = plus or minus 5% quantity variance from perpetual balance
Target should be absolute minimum of 95% for MRP/DRP to function effectively; 99% for best-in-class

 
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