Periodic Inventory Counting
The company does a periodic, physical count of inventory, generally taken annually – same time each year.
It is mainly used for low value, high quantity items where recording every transaction is impractical.
Cycle Counting
The company counts inventory regularly, on a pre-set cycle.
Trained staff dedicated specifically to the task:
- Count a selection of items each day;
- Count each item at a pre-set frequency;
- The trigger for counting inventory can vary from item to item. Many items are counted according to;
- Reorder Point (item counted when inventory level drops to reorder point); and
- New Stock (item counted when new stock is received).