Inventory Counting
- At periodic and defined intervals, the inventory is counted to reconcile the inventory records as a way to assure that the system shows an accurate depiction of what is actually in stock.
- This is usually done either by counting the entire inventory at the same time (called a physical inventory) or by counting the total number of items at varying times on a prescheduled basis (called cycle counting).
Types of Inventory Counting
- Cycle counting
Cycle counting is about counting in cycles. You do not count your full inventory at once but do it in parts.
- Ad-hoc counting
Ad-hoc counting is initiated by the user and is usually not planned, meaning this counting is quite handy in extraordinary situations.
- Tag counting
In preparation for tag counting, the store/warehouse employees should place a physical tag on each item. During counting, the worker must fill in the item ID, counted quantity, and other relevant information on the designated spaces on the tag.