ABC Analysis and Cycle Count

An ABC analysis determines the relative value of a group of inventory items based on a user–specified valuation criterion. ”ABC” refers to the rankings you assign your items as a result of this analysis, where ”A” items are ranked higher than ”B” items, and so on. You can optionally use the ABC analyses you compile to drive your cycle counts, where you might count items of high value (A items) very frequently, items of lower value less frequently, and items of lowest value very infrequently.

Steps Involved in ABC Analysis

  • Define ABC classes.
  • Define and run an ABC compilation.
  • Define Assignment groups.
  • Assign items to ABC classes within a group.
  • Update item assignments.
  • Purge ABC information.

Cycle counting is the periodic counting of individual items throughout the course of the year to ensure the accuracy of inventory quantities and values. Accurate system on–hand quantities are essential for managing supply and demand, maintaining high service levels, and planning production.
You can perform cycle counting instead of taking complete physical inventories, or you can use both techniques side–by–side to verify inventory quantities and values. Inventory supports serialized cycle counting, and the following chapters discuss the steps involved.

Overview of Cycle Counting & Serialized Cycle Counting
1. Defining and Maintaining a Cycle Count

2. Cycle Count Items & Defining Cycle Count Items

3. Cycle Count Scheduling
   Generating Automatic Schedules
   Entering Manual Schedule Requests

4.1 Count Requests
     Count Requests for Items with Zero Count
     Generating Cycle Count Requests
     Requesting the Cycle Count List

4.2 Entering Cycle Counts

4.3 Approval Options and Tolerances
  Count Adjustments and Approvals
  Approving Cycle Count Adjustments

5. Purge Cycle Count

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Manufacturing Cloud training will help you develop the fundamental skills required to set up and use the Manufacturing module. This training covers all the tasks, setups, forms and reports used in Manufacturing and related modules