EXP_0030

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The inventory sampling procedure is based on statistical procedures.
A sample is randomly selected from the stock management units for which a physical inventory is to be carried out, and then counted. The sample size depends on the probable degree of confidence you require when using the data obtained from the sample to make inferences about the entire stock management units.
The data posted for the sample stock is extrapolated, and then applied to all the stock management units included in the inventory sampling procedure.
If the deviation between the extrapolated value and the book value is very small, and the probability is high that any error in the extrapolation results is only very small, then the inventory sampling procedure is considered to have been successful.
In the preparation phase, you have to carry out the following steps:
Allocate stock management levels
You have to specify which stock management units are to be included in the inventory sampling procedure. To do this you do not assign individual stock management units to the sampling procedure, but rather you allocate quantities of stock management units, which are known as stock management levels.
Define/form stock population
The stock population is the total stock quantity in all stock management units included in the inventory sampling procedure.
Carry out stratification 
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The following steps have to be carried out during the active phase:
Generate random selection
Random selection is carried out separately for each stratum of the stock management units to be counted.
Create physical inventory documents
Carry out update
The system performs these two initial actions during the update:
It reads new count results.
It reads changed book inventory balances and book values.
Extrapolation
In the extrapolation, the physical inventory value of the sampling area is estimated, based on the latest count results. In each stratum an average physical inventory value is calculated per item, and this is multiplied by the number of items in that stratum. The total sum of these stratum values is the estimated value for the sampling area.
If the entire physical inventory value (estimated value for sampling area plus actual value for complete-count area) does not deviate from the book inventory value by more than 2% (standard system setting), the inventory sampling procedure is considered successful.
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