In March, chassis prep counts its inventory. In June, the cabinet shop does the same thing. In September, appliances counts its inventory. This inventory system is known as
A) cycle counting.
B) perpetual.
C) physical.
D) two-bin.

Question

Quizplus · Accepted Answer

The inventory system where specific items or sections within the warehouse are counted at regular intervals throughout the year is known as cycle counting. This approach helps to identify and rectify inventory discrepancies in a timely manner, allowing for a more accurate inventory count overall. In this case, chassis prep, cabinet shop, and appliances all count their inventory at different times during the year, indicating that they are following a cycle counting approach. Therefore, choice A is the correct answer. The other options, perpetual and physical, refer to different inventory systems that involve continuous tracking or manual counting of inventory at one specific point in time, respectively. The two-bin system is a specific inventory management approach that involves maintaining two bins of inventory for each item, with one serving as a backup when the first bin is emptied.

In March, Chassis Prep Counts Its Inventory