Which statement differentiates safety stock from cycle stock?

Which statement differentiates safety stock from cycle stock?

• A. Cycle stock is the regular inventory to meet expected demand.
• B. Safety stock buffers against uncertainty; cycle stock is the regular inventory to meet expected demand between replenishments.
• C. Safety stock is always higher than cycle stock.
• D. Cycle stock is used only for safety audits.

Answer: (B)

Understanding the difference between cycle stock and safety stock is about separating what you expect to consume from what you keep to cover uncertainty. Cycle stock is the quantity you plan to use to meet expected demand during a replenishment cycle; it gets replenished on a regular cadence. Safety stock sits on top of that as a buffer against variability in demand or supply delays, so you don’t run out when something is late or unexpectedly busy. For example, if you anticipate 100 units of demand per cycle but want a cushion for late shipments, you might hold 20 extra units as safety stock, making 120 total on hand during the cycle. The best statement expresses exactly this: safety stock buffers against uncertainty; cycle stock is the regular inventory to meet expected demand between replenishments. Other formulations miss one piece or imply a fixed relationship that isn’t guaranteed.

Understanding the difference between cycle stock and safety stock is about separating what you expect to consume from what you keep to cover uncertainty. Cycle stock is the quantity you plan to use to meet expected demand during a replenishment cycle; it gets replenished on a regular cadence. Safety stock sits on top of that as a buffer against variability in demand or supply delays, so you don’t run out when something is late or unexpectedly busy. For example, if you anticipate 100 units of demand per cycle but want a cushion for late shipments, you might hold 20 extra units as safety stock, making 120 total on hand during the cycle. The best statement expresses exactly this: safety stock buffers against uncertainty; cycle stock is the regular inventory to meet expected demand between replenishments. Other formulations miss one piece or imply a fixed relationship that isn’t guaranteed.