Which statement best describes cycle stock?

Which statement best describes cycle stock?

• A. The regular inventory to meet expected demand between replenishments
• B. The buffer against demand uncertainty
• C. Inventory stored for seasonal peaks
• D. Inventory used for returns

Answer: (A)

Cycle stock is the regular amount of inventory kept to meet expected demand during the period between replenishments. It represents what you normally use up as orders are fulfilled and is replenished back up to the same level with each new order, keeping the process steady over time. This is the baseline, predictable portion of inventory that drives the everyday flow of goods. This differs from safety stock, which sits in the system as a buffer for variability in demand or supply. It also differs from seasonal stock, which is extra inventory held specifically for predictable peaks at certain times of the year. And it isn’t about returns, which involve goods moving back from customers rather than being part of the regular forward-flow cycle.

Cycle stock is the regular amount of inventory kept to meet expected demand during the period between replenishments. It represents what you normally use up as orders are fulfilled and is replenished back up to the same level with each new order, keeping the process steady over time. This is the baseline, predictable portion of inventory that drives the everyday flow of goods.

This differs from safety stock, which sits in the system as a buffer for variability in demand or supply. It also differs from seasonal stock, which is extra inventory held specifically for predictable peaks at certain times of the year. And it isn’t about returns, which involve goods moving back from customers rather than being part of the regular forward-flow cycle.