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What is cycle inventory?

Sometimes referred to as working inventory, cycle stock is the amount of inventory available to meet typical demand during a given period. It's the amount of inventory you would expect to go through based on forecasts and historical data.

Why is cycle stock management important?

Effective cycle stock management can contribute to improved inventory turnover, which is the rate at which inventory is sold and replaced within a specific timeframe. Higher inventory turnover ratios indicate that products are selling quickly and efficiently, freeing up capital for other investments.

What is the difference between cycle stock and safety stock?

It ultimately comes down to the expected use for each type of inventory. Cycle stock are the goods allocated to meet regular customer demand over a certain amount of time. Safety stock, on the other hand, is more like backup inventory.

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