Which statement best describes Cycle Count (CC)?

• A. Cycle Count
• B. Amnesty Addback
• C. Pallet Count
• D. Simple Bin Count

Answer: (A)

Cycle count is an ongoing process where a small, representative portion of inventory is counted on a rotating schedule to measure and improve the accuracy of inventory records. The goal is to regularly verify stock levels and quickly catch and correct discrepancies without taking the entire warehouse offline for a full physical count. This approach focuses on maintaining accuracy over time by targeting items or locations with higher variance or value, and updating the system when variances are found.

Amnesty addback is about restoring items that were previously removed or written off, not about counting practices. Pallet count refers to counting whole pallets at once, which is a broader procedure and not the ongoing sampling focus of cycle counts. Simple bin count is a single-bin manual count, whereas cycle counting is systematic, recurring across multiple items and locations to maintain continuous accuracy.