Cycle counting
A) is used to determine average cycle service level
B) is used to identify shelves needing repair
C) has a lower tolerance level for slower-moving items
D) follows a schedule such that the quantity of every SKU in inventory is counted at least once a year

Question

Quizplus · Accepted Answer

Cycle counting is a method of inventory auditing that follows a schedule such that the quantity of every SKU in inventory is counted at least once a year. This helps ensure the accuracy of inventory records and can identify discrepancies or errors in record-keeping. Option A is incorrect because cycle counting is not used to determine average cycle service level. Option B is incorrect because identifying shelves needing repair is typically done through a separate maintenance and repair process. Option C is incorrect because cycle counting should have the same tolerance level for all items, regardless of their speed of movement.

Cycle Counting