Worked Example: ABC Cycle Counts
Build an ABC cycle-count plan from movement, value, and risk signals.
Kara needs a cycle-count plan for three categories: cigarettes, energy drinks, and novelty candy. She has limited labor and recent variance in high-value items. ABC analysis: classify inventory by value and risk so control effort matches business impact. The common trap is counting the easiest aisle first because it feels productive, while high-value variance waits another week. Step 1 List each category's weekly sales value, margin exposure, shrink history, and stockout pain. ABC is not only unit movement. In convenience stores, cigarettes may be lower unit count than candy but much higher risk and value. Step 2 Mark A-items where…
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