What does “cycle counting” refer to?

Cycle counting is a procedure focused on auditing inventory accuracy regularly and systematically. This process involves counting a subset of inventory in a facility on a set schedule, allowing businesses to identify discrepancies between actual counts and recorded inventory levels. This frequent verification of inventory helps to maintain accurate records, reduce inaccuracies, and improve the overall efficiency of inventory management.

By implementing cycle counting, organizations can minimize the disruptions and labor costs associated with traditional year-end inventories. Furthermore, cycle counting typically leads to quick identification and correction of errors, enhancing the reliability of inventory data, which is crucial for inventory control, order fulfillment, and financial reporting.

In contrast, the other options do not relate to inventory accuracy. Production speed relates to manufacturing processes, employee schedules pertain to workforce management, and demand forecasting is about predicting future customer demand. These aspects are essential to business operations but do not encompass the concept of cycle counting.