In supply chain management, what does the term "cycle counting" refer to?

Cycle counting is an inventory auditing procedure that involves regularly counting a small, specific portion of inventory rather than conducting a complete inventory count. This method allows for more frequent verification of inventory accuracy. By focusing on a subset of inventory, organizations can maintain accurate stock levels and identify discrepancies in a timely manner. This process helps to improve inventory management, reduce errors, and ultimately enhance the overall efficiency of the supply chain.

Options related to tracking supply chain performance, determining supplier reliability, or managing demand fluctuations do not accurately define cycle counting, as they refer to different aspects of supply chain management. Cycle counting specifically pertains to the monitoring and verification of inventory levels, making the first choice the most appropriate definition.