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An optimal algorithm to initiate count request creation for cycle count process. Disclosure Number: IPCOM000240554D
Publication Date: 2015-Feb-09

Publishing Venue

The Prior Art Database


Disclosed is an optimal algorithm to initiate count request for cycle count process, this algorithm would help to improve inventory accuracy and reduce warehouse operating costs.

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An optimal algorithm to initiate count request creation for cycle count process .

Inventory accuracy has an effect on various areas of an organization. The purchasing department relies on accurate inventory data to trigger the purchase of materials and supplies. Production and planning requires an accurate inventory to plan and schedule production. An inaccurate inventory can cause out of stock items, which result in late deliveries to customers and the potential loss of business etc.

Inventory shrinkage/loss can happen due to various activities in warehouse / distribution center such as inventory movement, theft, damage of end products or inventory getting obsolete etc.

One of the effective ways of managing inventory is Cycle Count. A properly implemented cycle counting program can raise the performance and efficiency levels of a manufacturing or distribution business.

Cycle Count: Cycle count is a process that is performed periodically, usually for a small area such as location range. In cycle count, a user performs an inventory count with processes such as, putaway [receiving and storing inventory ] , replenishment [ Movement of goods from bulk location to shelf locations], picking [ Picking for sales orders], and so on, Cycle count can be executed in parallel (to the business operations) as opposed to year end counting[Physical count] by shutting down the warehouse.

Below are the advantages of cycle count.

1. Unmatched accuracy - Inventory is easily counted with an automated system. Accurate data and a full audit trail is provided to report exactly what inventory is or isn't present.

2. Cost and time savings - Because cycle counts are electronic and ongoing, business operations are no longer disrupted by full physical inventory counts that halt business operations. In addition, problems and discrepancies are more easily spotted and corrected. This saves you labour costs and hours of time.

3. Operational efficiency - Real-time accurate visibility into the location of your inventory allows for greater productivity. For example, if a customer wants a particular item, in a warehouse, or in another store, without having to purchase another item and wasting your customer's time.

4. Enhanced sales - Since cycle count provides better visibility, sales would be enhanced as there is no cancellation of orders, reduction in return orders.

5. Inventory control- Better decision making about reorder points, out-of-stock inventory and excess inventory.

6. Greater flexibility -Counts can be performed as many times as necessary and different categories of parts can be counted at different intervals.


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Problem statement:

One of the biggest challenges faced by both B2B and B2C warehouses/distribution centers is when to put the item on cycle count. It is bad to count items too often and it is bad not to count item for a longer duration.

The existing methods of generating count request are static in nature. Hence those need some man...