In: Operations Management
4,400 items in inventory, 400 A items, 1,500 B items, 2,500 C items. Policy is to count A items every month (30 working days), B items every quarter (90 days), and C items every six months (180 days).
Item Class |
Quantity |
Cycle Counting Policy |
Number of Items Counted per Day |
A |
400 |
Each month |
|
B |
1,500 |
Each quarter |
|
C |
2,500 |
Every 6 months |
Total Items to count per day___________
Total items in inventory = 4400
Number of A items in inventory = 400
Number of B items in inventory = 1500
Number of C items in inventory = 2500
All A items are counted every 30 working days. So number of A items counted each day = 400/30 = 13.33 items
All B items are counted every 90 working days. So number of B items counted each day = 1500/90 = 16.67 items
All C items are counted every 180 working days. So number of C items counted each day = 2500/180 = 13.89 items
Therefore, total number of items need to be counted each day = 13.33 + 16.67 + 13.89 = 43.89 or rounded up to 44 items
(Note - All the intermediate calculations are rounded to two decimal places and the final answer to the nearest whole number)