INVENTORY ACCURACY
How to Build a Cycle Count Plan by Inventory Class
Count frequency should follow consequence and record risk, then be corrected using actual variance and root-cause data.
SHORT ANSWER
The decision in one minute
Start with ABC/XYZ and criticality as risk signals, assign a documented initial frequency, spread counts across workable days, and measure completion and accuracy. Escalate repeat variance and correct transaction, location, packaging, or process causes.
Define the control before the schedule
Choose the population, accuracy definition, tolerance, blind-count procedure, recount rule, and posting authority. Separate quarantine, consignment, work in process, and regulated stock when their controls differ.
A frequent count with uncontrolled adjustments does not create reliable records. Preserve first count, recount, expected quantity, observed quantity, and disposition.
Assign risk before frequency
Use value, variability, criticality, shrink exposure, transaction volume, prior variance, and location complexity. Document the reason for each initial frequency.
Spread work across operating days, avoid known movement peaks, and reserve time for recounts and root-cause work.
Correct causes and review evidence
Classify causes such as unposted movement, wrong unit, receiving error, picking error, damage, misplaced stock, or master-data issue. Repeated variance needs corrective work rather than endless recounts.
Review completion, first-count accuracy, adjustment value, repeat offenders, and causes by class. Change frequency only with a recorded effective date.
A practical workflow
- Define scope, tolerance, and adjustment rules.
- Classify by value, variability, criticality, and history.
- Calendar feasible initial frequencies.
- Count, recount, and preserve evidence.
- Correct causes and review accuracy by class.
Primary references
Use the current rule, specification, or manufacturer guidance for your exact situation.