Cycle Counting

It is a method for inventory check where the inventory is classified into A, B, C codes, and the higher the priority of the item is, the more frequently the inventory check is performed. Recently along with the popularization of MRP, more and more companies have employed the Cycle Counting method. This is why it is crucial for the firms which introduced MRP to maintain the the inventory accuracy higher, and the traditional once-a-year or once-a-half-year inventory check is not enough to do that. 


Related term: Stocktaking