ECONOMICS

Detailed explanation-1: -Reduced errors in transactions. Keeps your business open. Runs as a perpetual process throughout the year. There is no need to shut down all operations when an inventory count is required.

Detailed explanation-2: -Improved ability to fill orders: Because cycle counting allows smaller batches of goods to be counted multiple times a year, inventory variances in the ordering system are reduced. As a result, there are fewer items on back-order.

Detailed explanation-3: -Implementing cycle counts helps companies to view the accuracy of their inventory counts as an important part of the entire business operations. It helps them to make better purchase decisions for your company. The most important reason for using cycle counting is to get an exact count of your warehouse inventory.

Detailed explanation-4: -Reduced Errors If by any chance the inventory is not accounted for correctly, it is easier to catch the error by way of cycle counting. Cycle counting also improves the accuracy of inventory counting, as you’re less likely to make any mistake while counting a relatively smaller amount of inventory.

Detailed explanation-5: -The purpose of cycle counting is to identify and rectify inventory inconsistencies and help manufacturers perform better compared to industry benchmarks. Cycle counting confirms the accuracy of inventory levels.