Cycle Count Accuracy
Assesses the accuracy of inventory counts done periodically (daily, weekly, monthly) compared to the inventory management system records. Regular cycle counts help in maintaining inventory accuracy, identifying potential issues early, and reducing the need for full, disruptive inventory checks.
(Items Correctly Counted in Cycle Count / Total Items in Cycle Count) x 100
If 485 out of 500 items are correctly counted in a cycle count, the accuracy is 97%.