ABC Analysis
Must we use ABC Analysis? Can we just schedule and do manual cycle counts?
Technically (& theoretically as well) you can do cycle count without ABC analysis but hardly any organization does that
If an organization chooses to employ only a physical location cycle counting program, and never considers an item's classification in terms of any kind of ranking. Then why bother with ABC Analysis.
This is an environment where movement is constant unless we physically isolate the subinventory and locators to be counted.
It depends how many inventory items you have and the value of each items...
You definitely wont want to put much effort in counting 100s of items of less than $1
But few organizations might prefer to count items of more than $xxxx 6-8 times in a year..
Again its all the business decission and depends the organization environment
must I use ABC Analysis in my cycle counting program?