April 2011
Beginner
272 pages
4h 45m
English
Content preview from Essentials of Inventory Management, 2nd EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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CHAPTER 6
WHY INVENTORY SYSTEMS FAIL AND HOW TO FIX THEM
The objective of this chapter is to provide you with an understanding of the nature of inventory accuracy and the working tools to “fix” your inventory system. If all items are moving through a properly operating system, then it doesn’t matter what the characteristics of an SKU are—expensive item, inexpensive item, fast mover, slow mover, long lead time, critical—the shelf count of the item (actual balance on-hand stock levels) and record count (how many your records say are supposed to be here) will match.
The traditional method of determining if actual balance on-hand stock levels match book/record levels is to take an annual physical inventory. As a method of correcting inventory accuracy ...
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