Logistics & Supply Chain

Basic

Cycle Stock

Average working inventory between deliveries, half the order quantity.

Formula

CS = \frac{Q}{2}

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Variables

CSCycle stock

QOrder quantity

Example

Q=707: CS ≈ 354 units

Did You Know?

Cycle stock plus safety stock gives the average total inventory a warehouse carries.

logistics cycle stock inventory

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More in Logistics & Supply Chain

Economic Order Quantity

Order size that minimises the combined cost of ordering and holding stock.

Reorder Point

Stock level that triggers a new order, covering demand during the lead time.

Safety Stock

Buffer inventory that absorbs demand variability during lead time.

Inventory Turnover

How many times inventory is sold and replaced in a period.

Days Inventory Outstanding

Average number of days stock sits before being sold.

Little's Law

Average items in a system equals arrival rate times average time in the system.