Supply Chain · Inventory · Component
The stock position
What is held, where, and at what value — with a record accurate enough to be trusted.
The deliverable
What it is
Inventory records diverge from reality continuously through miscounts, unrecorded movements and damage. The question is only how large the gap is.
Cycle counting keeps the gap small at a fraction of the cost of an annual full count, and it produces an accuracy figure that tells you how much to trust the number.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The valuation
What the stock is worth, on a stated basis.
3 attributes: Value · Basis · Write-down
LearnThe accuracy
How closely the record matches what is actually there.
3 attributes: Record accuracy · Last counted · Count cycle
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Cycle counting produces an accuracy rate. Without one, you cannot know whether the record can be planned on.
The other components in inventory
The reorder rules
Reorder point and safety stock per item, derived from measured variability and a chosen service level rather than from intuition.
LearnThe ageing report
Stock by how long it has been held — which is where obsolescence shows before it shows in the valuation.
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