What is Cycle Stock ?
“Cycle stock is the average amount of inventory held due to the periodic replenishment of inventory”
- Cycle stock inventory, is the portion of inventory available to meet normal demand during a given period. For FG this period refers to the Replenishment Lead Time and for FG refers to the Procurement Lead Time
- It is one of the more important portions of inventory because it is the amount of inventory needed to meet customer needs. The cycle stock inventory is the first place a customer’s order will be fulfilled from.
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