Cycle Stock
Average working inventory between deliveries, half the order quantity.
Live Calculator
MembersVariables
Example
Q=707: CS ≈ 354 units
How it works
Cycle stock is the inventory you expect to use up steadily between one replenishment and the next. If demand is roughly constant and the whole order is received at once, stock starts at Q and falls to 0, so the average level over the cycle is halfway between them: Q/2. This gives a simple estimate of the amount tied up in normal operating inventory.
When to use it
Use this when you need a quick estimate of average on-hand inventory for items that are reordered in fixed batches and consumed fairly steadily. It is common in inventory planning, warehousing, and cost calculations where demand is not extremely erratic.
Worked example, step by step
Step 1: Identify the order quantity, Q = 480 units Step 2: Apply the formula CS = Q/2 Step 3: Substitute the value: CS = 480/2 Step 4: Calculate: CS = 240 units Final answer: The cycle stock is 240 units
Common mistakes to avoid
- Using daily demand instead of the order quantity Q
- Forgetting that the formula gives an average, not the maximum stock level
- Applying it when stock is replenished gradually or demand is highly irregular
Did You Know?
Cycle stock plus safety stock gives the average total inventory a warehouse carries.
Share this formula
More in Logistics & Supply Chain
View allEconomic Order Quantity
IntermediateOrder size that minimises the combined cost of ordering and holding stock.
Reorder Point
BasicStock level that triggers a new order, covering demand during the lead time.
Safety Stock
AdvancedBuffer inventory that absorbs demand variability during lead time.
Inventory Turnover
BasicHow many times inventory is sold and replaced in a period.
Days Inventory Outstanding
BasicAverage number of days stock sits before being sold.
Little's Law
IntermediateAverage items in a system equals arrival rate times average time in the system.