A cycle count is an inventory auditing procedure, which falls under inventory management, where a small subset of inventory, in a specific location, is counted on a specified day. Cycle counts contrast with traditional physical inventory in that a full physical inventory may stop operation at a facility while all items are counted at one time. Cycle counts are less disruptive to daily operations, provide an ongoing measure of inventory accuracy and procedure execution, and can be tailored to focus on items with higher value, higher movement volume, or that are critical to business processes. Cycle counting should only be performed in facilities with a high degree of inventory accuracy (greater than 95%). The purpose of cycle counting is to verify the inventory accuracy and is not an adequate procedure to be used to correct inventory errors.
Read more about Cycle Count: ABC Analysis, Determining Selection Method and Count Frequency, Automation, Dangers
Famous quotes containing the words cycle and/or count:
“The Buddha, the Godhead, resides quite as comfortably in the circuits of a digital computer or the gears of a cycle transmission as he does at the top of a mountain or in the petals of a flower.”
—Robert M. Pirsig (b. 1928)
“The beginnings of altruism can be seen in children as early as the age of two. How then can we be so concerned that they count by the age of three, read by four, and walk with their hands across the overhead parallel bars by five, and not be concerned that they act with kindness to others?”
—Neil Kurshan (20th century)