What inventory counting method involves regularly counting a portion of the inventory?

The inventory counting method that regularly counts a portion of inventory is called cycle counting.

Instead of shutting down operations to count every item at once, cycle counting checks a small, specific subset on a recurring schedule. Over time, the process can cover the entire inventory while causing less disruption to warehouse activity.

Businesses choose counting schedules in different ways. ABC-based programs count high-value or fast-moving items more frequently, while usage-based programs focus on products handled most often. Other approaches select items by location, at reorder points, or when inventory records appear especially likely to be inaccurate.

Cycle counting is closely related to perpetual inventory systems, which update stock records continuously as goods move. It is not the same as physical inventory: a physical inventory usually means a comprehensive count performed at a particular time. ABC analysis can help decide what to count, but it is an inventory-classification method rather than the counting procedure itself.