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<p>INVENT offers the following sampling methods for industry and trade:<br>
<br>
<img src="img/kreis.gif" width="7" height="16" border="0"> periodical sampling-type inventory<br>
<img src="img/kreis.gif" width="7" height="16" border="0"> permanent sampling-type inventory<br>
<img src="img/kreis.gif" width="7" height="16" border="0"> sequential test procedures<br>
<b><br>
</b>
<h1><b> Periodical sampling-type inventory</b>
</h1>
<p>The general requirements for carrying out sampling-type inventories
specifies the use of mathematical-statistical procedures to meet
the necessities of proper bookkeeping. <br>
Additionally the validity of the results must be equivalent to a
complete stock take.</p>
<p>The resulting legal principles of a sampling-type inventory don't
allow for the use of any sampling procedure:</p>
<p><img src="img/kreis.gif" width="7" height="16"> The detailed
documented inventory system must ensure that samples, <br>
<img src="img/blank.gif" width="7" height="16" border="0"> which are being drawn out of a stock keeping unit, are randomly
selected.</p>
<p><img src="img/kreis.gif" width="7" height="16"> The extrapolation
which follows the stock take must result in an exact determination <br>
<img src="img/blank.gif" width="7" height="16" border="0"> of the
inventory value, so that the actual value of the stock is reflected
with a <br>
<img src="img/blank.gif" width="7" height="16" border="0"> maximum
deviation of just 2 percent. </p>
<p>The recognized mathematical-statistical methods are based on estimation
and test procedures.</p>
<p>The periodical sampling-type inventory of the system family INVENT
(INVENT II) belongs to the estimation procedures. This procedure,
which is based on a single sample on a valuation date, determines
through extrapolation the total stock value. <br>
Considering the accuracy of 99 %, the costs of inventory can be
reduced by 95 %. As a result of that, just a small amount of stock
keeping units have to be manually registered on a inventory date,
even if the date has been moved back or forward, so that the accuracy
and the certainty of the results is not being affected.<br>
</p>
<p><b>Permanent sampling-type inventory</b></p>
<p>The permanent sampling-type inventory of the system family INVENT
(INVENT II) belongs (just like the periodical sampling-type inventory)
to the estimation methods.<br>
The estimation procedures, based on sampling, obtain the total value
of a stock by extrapolation. With an accuracy of <br>
99 %, the costs of inventory can be reduced by 95 %.</p>
<p>The permanent sampling-type inventory extrapolates differences
of inventory of the determined stock keeping units in the course
of the year for the entire stock.<br>
The inventory value of the total stock results from the current
book value at a key date, which is corrected by the estimated total
difference of inventory. The accuracy will be checked by the assumption
test. If the test confirms the legal requirements, the data of the
stock bookkeeping can be used as a basis for balancing the account.<br>
</p>
<p><b> Sequential Test</b></p>
<p>Another sampling-type inventory procedure from the INVENT family
is the sequential test (INVENT IV). With a further reduction of
sampling efforts, the sequential test is a testing procedure, which
has already been used successfully for years in automatically controlled
stocks with precise stock management. Especially in these kinds
of stocks, the counting efforts and the cost of inventory are not
proportional to the planning reliability.</p>
<p><b>Characteristics / Benefit of the Sequential Test<br>
</b>The sequential test (INVENT IV) is checking the correctness
of single items of the stock bookkeeping. This means that the book
amount is checked whether it can be used as a basis for balancing
the account. The stock bookkeeping is being accepted as a reliable
basis when the highest permitted total deviation of 2 % of the total
stock with an significance level of 5 % can be met. Compared to
the conventional sampling methods, the sequential test can reduce
the cost of inventory by a further 50 %.</p>
<p><b>Proceedings<br>
</b>In contrast to the conventional sampling procedures the
sequential test doesn't predefine the extent of the inventory sampling
which is necessary for the accuracy and reliability of the outcome.<br>
The total extent of the inventory sampling depends rather on the
amount of the actual inventory differences of the individual samplings.
Single samples are randomly chosen and successively analysed. After
each selection of a sample there will be a check for the following
results:</p>
<ul>
<li><b>Acceptance of the stock bookkeeping<br>
</b> The draw of additional samples will be abandoned, if the
determined extent of deviation between the target and the actual
performance is inside the predefined range of assumption.<br>
<br>
</li>
<li> <b>Rejection of the stock bookkeeping<br>
</b> If the determined amount of the inventory differences lies
beyond the rejection limit, then the stock must be determined
by a different sampling method or by a complete inventory.<br>
<br>
</li>
<li><b>Draw of additional samples<br>
</b> In cases where the determined inventory difference value
lies inside a zone of indifference then a decision about the acceptance
or rejection of the book inventory balance cannot be made. This
means that the drawing of more samples will be continued until
a decision can be made.<br>
<br>
</li>
</ul>
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