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Cycle counting

1) Cycle counting is the physical counting of stock on a perpetual basis, rather than counting stock periodically. A cycle is the time required to count all items in the inventory at least once. The frequency of cycle counting can be varied to focus management attention on the more valuable or important items or to match work processes. Some of the systems used are:

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Control group cycle counting

1) The repeated physical inventory taking of a small ‘control group’ of parts, in the same locations, within a very short time frame to verify the design of a new inventory process. It is the only form of cycle counting not truly used to measure inventory record accuracy. (Source: ILT Supply-Chain Inventory Management SIG)

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Random sample cycle counting

1) A method in which the particular parts to be counted are selected from the population of part numbers in a manner that has no inherent bias. In this selection process, each part number has an equal chance of being selected. (Source: ILT Supply-Chain Inventory Management SIG)

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