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 cycle of the machine is now coming to an end. Man has learned much in the hard discipline and the shrewd, unflinching grasp of practical possibilities that the machine has provided in the last three centuries: but we can no more continue to live in the world of the machine than we could live successfully on the barren surface of the moon.”
—Lewis Mumford (1895–1990)
“I should count myself the coward if I left them, my Lord Howard,
To these Inquisition dogs and the devildoms of Spain.’”
—Alfred Tennyson (1809–1892)