Editing Cycle count (section)

===Pareto method===
The Pareto method, derived from the [[Pareto principle]], is to cycle count inventory by percentage of inventory value. Items with a higher determined value are counted more often, while items that have little movement are seldom counted. This approach is usually based on value which appeals to [[accountants]] by minimizing the variance in inventory value. The analysis may also be based on usage from an operational point of view. This is perceived as being more efficient from a [[supply chain management]] perspective by concentrating effort on higher volume of use items.<ref>Essentials of Inventory Management, by Max Muller (p.188)</ref>  The main shortcoming is that low value items may be ignored and cause an entire [[assembly line]] to halt while a minor component is re-ordered.