Cole’s Trucks, Inc., a builder of high-quality refuse trucks, has about 5,000 items in its inventory. It wants to determine how many items to cycle count each day.

APPROACH c After hiring Matt Clark, a bright young OM student, for the summer, the firm determined that it has 500 A items, 1,750 B items, and 2,750 C items. Company policy is to count all A items every month (every 20 working days), all B items every quarter (every 60 working days), and all C items every 6 months (every 120 working days). The firm then allocates some items to be counted each day.