What is the primary purpose of cycle counts in inventory management?

The primary purpose of cycle counts in inventory management is to count small sections of inventory regularly. This method allows businesses to maintain accurate inventory records and ensure that stock levels are correct without requiring a full inventory count, which can be disruptive and time-consuming. By focusing on smaller segments, companies can quickly identify discrepancies between physical inventory and recorded inventory, thereby minimizing errors and enhancing inventory accuracy over time. Regular counting intervals help prevent stockouts and overstock situations, facilitating better decision-making regarding inventory levels and replenishment.

Other options, while relevant to broader inventory and business management, do not directly address the specific function of cycle counts. Analyzing sales trends, evaluating employee performance, and determining pricing strategies involve different areas of business operations that do not necessarily involve the routine checking of inventory levels that cycle counts provide.