The primary purpose for engaging in cycle count activities is to:

The primary purpose for engaging in cycle count activities is to:
A . eliminate the need for a traditional physical inventory count.
B . more frequently reconcile the actual on-hand and system on-hand for items.
C . smooth out the tasks of counting inventory throughout the fiscal year.
D . improve material handling processes and reduce or eliminate errors.

View Answer

Answer: B

Explanation:

Cycle count is an inventory management technique that involves counting a subset of inventory items on a regular basis, usually based on some sampling criteria1. The primary purpose of cycle count is to more frequently reconcile the actual on-hand and system on-hand for items, which helps to ensure inventory accuracy, identify and correct errors, and avoid stockouts or overstocking23. Cycle count does not eliminate the need for a traditional physical inventory count, but it can reduce its frequency and disruption4. Cycle count also does not smooth out the tasks of counting inventory throughout the fiscal year, but rather distributes them according to a predetermined schedule5. Cycle count may indirectly improve material handling processes and reduce or eliminate errors, but this is not its primary purpose.

References:

• What is cycle count in inventory management?

• Inventory Cycle Counting 101: Best Practices & Benefits

• Understanding The Cycle Count In Inventory Management

• What is Inventory Cycle Counting?: A 2023 Guide

• Cycle Count: Everything A Warehouse Manager Should Know

• [CPIM Part 2 Exam Content Manual], p. 40