A cycle count is an inventory management procedure where a small subset of inventory is counted on any given day. Cycle counts contrast with traditional physical inventory in that physical inventory stops operation at a facility and all items are counted, audited, and recounted at one time.

Cycle counts have the advantage that they are less disruptive to daily operations, provide an ongoing measure of inventory accuracy and procedure execution, and can be tailored to focus on items with higher value or higher movement. It is generally believed that the more a type of item is touched the more likely it is to experience inventory variances. Therefore, if inventory counting focuses on those items with the highest movement you are more likely to identify variances.