Certified Logistics Technician (CLT) Practice Exam

A cycle count is a method of inventory management that is typically based on ABC analysis. This approach categorizes inventory into three types: 'A' items, which are high-value, low-quantity items; 'B' items, which are moderate in both value and quantity; and 'C' items, which are low-value, high-quantity items.

By focusing on the 'A' items more frequently and 'C' items less often, organizations can prioritize their counting efforts based on the impact each item has on overall inventory value. This targeted method helps in maintaining accuracy and efficiency in inventory management. Using ABC analysis in cycle counting allows businesses to ensure that high-value items are regularly verified, reducing discrepancies and improving overall inventory control.

Other counting methods, such as randomly selected counting or annual full counts, do not provide the same level of focus on inventory value and control as the ABC analysis-based cycle counting method does. Therefore, leveraging ABC analysis equips organizations to maximize their inventory efficiency and maintain tighter control over their assets.