How often is an inventory analysis performed at a minimum?

An inventory analysis is performed at least monthly to ensure that stock levels are appropriate and to facilitate effective inventory control. This frequency allows managers to closely monitor inventory turnover, identify slow-moving or obsolete items, and make informed decisions regarding restocking and procurement strategies. Monthly assessments help maintain accurate data for future forecasting and improve overall inventory management.

Conducting inventory analysis less frequently than monthly could result in significant discrepancies and inefficiencies, potentially leading to stockouts or excess inventory. Thus, the choice of monthly as the minimum frequency aligns with best practices in inventory management for maintaining optimal stock levels and ensuring smooth operations.