You have a high value item that you want to audit on an unscheduled basis to deter pilfering.
Which method would you use to do this?
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A. B. C. D. E.D.
Out of the given options, the method that would be most appropriate to audit a high-value item on an unscheduled basis to deter pilfering is the Blind Inventory Count (Option E).
A Blind Inventory Count is a type of inventory counting method where the person conducting the count is not aware of the actual inventory levels. This is typically used to deter pilfering, as employees are less likely to steal if they know that the inventory levels are unknown. The Blind Inventory Count is usually performed by a third party, who is not associated with the inventory management or handling process, to ensure unbiased and accurate counting.
Here's a brief explanation of the other options to provide further clarity:
A) ABC Count: ABC analysis is a method of inventory classification based on the Pareto principle, which states that 80% of the effects come from 20% of the causes. In inventory management, this principle can be applied by categorizing inventory items into three groups - A, B, and C - based on their relative value. While ABC counting can help identify high-value items, it does not provide any mechanism to deter pilfering.
B) Physical Inventory Count: A Physical Inventory Count is a method of inventory counting where inventory levels are counted manually or through an automated system. This method involves physically counting the items in stock, and then comparing that count to the inventory records to identify discrepancies. While physical inventory counts are a useful tool to maintain accurate inventory records, they are not specifically designed to deter pilfering.
C) Automated Cycle Count: Automated Cycle Count is a method of inventory counting that uses an automated system to count a portion of the inventory on a regular, recurring basis. This method can help ensure that inventory levels are accurate and up-to-date, but it may not deter pilfering if employees know when the counts are scheduled to take place.
D) Manual Cycle Count: Manual Cycle Count is a method of inventory counting where a portion of the inventory is counted manually on a recurring basis. This method can be useful to maintain accurate inventory levels and identify discrepancies, but it may not be effective in deterring pilfering as employees may be aware of when the counts are scheduled.
In summary, while each of these methods can be useful in inventory management, the Blind Inventory Count is the most appropriate method to deter pilfering on an unscheduled basis.