GlossaryRetail & Inventory
Cycle Count
Also called: cycle counting, perpetual count
What is Cycle Count?
Cycle counting checks a small subset of items frequently — daily or weekly — instead of counting everything at once. Fast-moving and high-value lines are counted often, slow lines rarely.
Why Cycle Count matters
Full counts are disruptive, so they get postponed, and problems age. Cycle counts catch discrepancies within days, when the paperwork to explain them still exists.
How Cycle Count works in practice
Use ABC analysis to set frequency: A items weekly, B monthly, C quarterly. Rotate through the list so everything is covered over a cycle, and investigate variances the same week.
Frequently asked questions
It reduces how much a full count finds, but most businesses still do a full count at year end.