Question

2. What might be challenges with implementing cycle counting effectively? List and briefly explain at least 3.

Answer 1

Cycle counting is an inventory sampling technique that audits a small subset of sample on a specific day without counting the whole warehouse. It is less disruptive on daily industrial operations. There are certain disadvantages associated with cycle count technique depending on different operational conditions. The present study will look after for three most valuable challenges which are related to the cycle count technique.

• Physical counting method is a part of the cycle count technique which delivers audit reports daily for the part of the warehouse. It is essential to monitor the consistency of the performances, and it indicates a considerable amount of labour force for the company. A large amount of workforce means huge expenses only for monitoring tasks. It also shows a lot of time and energy consumption for the counting method.

• The management system needs to be disciplined and organised to provide whole efforts and time to carry out the counting process. If the management team do not take actions immediately when errors are highlighted, then it is not possible to get out of the problem in future.

• Inability to handle material counts can create substantial problems like cash flow or budget conflicts, revenue and shipping delays, under or overruns of operations etc. cycle counting is not everyone’s cup of tea, and it needs accuracy and experiences.