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Cycle Counting
A method of checks and balances in inventory management where a small portion of the inventory is counted on any given day.
Implications
An inventory management technique where a small portion of inventory is counted on a regular basis, rather than conducting a full inventory count, helping to maintain accuracy and identify discrepancies without disrupting operations.
Example
Example: A warehouse implements cycle counting by scheduling counts of different product categories each week, ensuring ongoing inventory accuracy and reducing the need for full-scale counts.
Related Terms
Different from traditional inventory counts, which may be done annually, cycle counting is an ongoing process that improves inventory accuracy without significant operational disruptions.
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