Estimation Sampling: A mini physical inventory involving 5% to 10% of products. Standard receiving and shipping cut-offs remain. The results are used as the basis for booking an inventory reserve, to adjust financial value for undetected variances.
Statistically Based Cycle Counting: A random approach to cycle counting; what is randomly selected and counted should eventually represent your total population. The level of counting is driven by accuracy of records.
Quest: Quality Assurance Using Efficient Statistical Techniques, a software application using MS Access. Quest is written to: (a) provide an environment for root-cause analysis, benchmarking, and continuous feedback; (b) supply top management and business partners with up-to-date inventory information; and (c) meet year-end requirements with information presented in an easy-to-read format. Quest is linked to target.direct’s RS6000 through an Excel query.