Certified Supply Chain Professional (CSCP) Practice Exam

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Prepare for the Certified Supply Chain Professional Exam with a comprehensive quiz featuring multiple choice questions and essential study material. Gain the knowledge and confidence needed to excel in your certification journey!

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What is periodic counting in inventory management?

Counting inventory continuously throughout the year
Performing a complete inventory shutdown once a year
Using automated systems to track daily sales
Regularly adjusting inventory based on sales data

The correct answer is: Performing a complete inventory shutdown once a year

Periodic counting in inventory management refers to the practice of conducting a complete inventory shutdown, typically at scheduled intervals, such as once a year. This method involves stopping all operations during the count to ensure that an accurate inventory is taken without any interruptions or discrepancies caused by ongoing transactions. This approach allows organizations to verify physical stock levels and assess inventory accuracy against the records. By taking a complete inventory count at set periods, businesses can identify issues, such as shrinkage or overstock situations, and make necessary adjustments to their overall inventory management practices. In contrast, continuous counting, automated tracking, and regular adjustments based on sales data suggest more real-time inventory management approaches, which do not align with the definition of periodic counting. These methods focus more on ongoing accuracy and responsiveness to changes in stock levels rather than the systematic, scheduled counting inherent in periodic counting.