Western Governors University (WGU) MGMT4100 C720 Operations and Supply Chain Management Practice Exam

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How often is inventory typically counted in a cycle counting process?

Once a year

At least once per replenishment cycle

In a cycle counting process, inventory is typically counted at least once per replenishment cycle. This approach allows organizations to maintain accurate inventory records without the need for a full physical inventory count, which can be disruptive and time-consuming.

Cycle counting involves selecting a subset of inventory items to count on a rotating schedule, which helps to identify and correct discrepancies in stock levels. By counting during each replenishment cycle, businesses can monitor inventory levels more effectively and ensure that the data reflects current stock accurately.

This method is particularly beneficial because it enables a more flexible and efficient inventory management process, allowing for adjustments based on real-time data and operational needs. It strikes a balance between the frequency of counts and operational efficiency, helping organizations react promptly to inventory issues and minimize the risk of stockouts or overstock situations.

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