When ever I talk to our clients about their inventory strategy I bring up "safety stock" and "cycle stock". Most people understand the "safety stock" component of inventory, but sometimes the "cycle stock" part is a little confusing. I came across this post from eFinance Management that seems helpful on this topic. Apologies ahead of time for all the spammy ads on their site. Maybe just put it in Reader mode on your browser.
Cycle Inventory or Cycle stock or working stock or lot size stock is an essential part of the total inventory. It is that part of the entire inventory that helps the company to meet the usual demand for the product. It is essential because this is what a company uses first to fulfill the customer’s order.
Frequently asked questions
Get your guide to Sales and Operations Planning for beverage alcohol
Discover the benefits, best practices and a free checklist to improve your S&OP.
