Article ID: | iaor199033 |
Country: | United States |
Volume: | 27 |
Start Page Number: | 66 |
End Page Number: | 74 |
Publication Date: | Mar 1986 |
Journal: | Production and Inventory Management Journal |
Authors: | Morey Richard C. |
The primary impact of an inventory record error is that the system may fail to reorder when it should, resulting in unplanned stockouts. Optimum elapsed time between counts depends upon item cost, counting cost, item criticality, usage rate, and error rate. An EOQ-like formula for determining optimal frequency of cycle counting insures, at a prestated level of protection, that remaining errors do not cause low availability.