Which term refers to the regular inventory needed to fulfill orders?

Which term refers to the regular inventory needed to fulfill orders?

• A. Cycle Stock
• B. Safety Stock
• C. Just in Time
• D. Open to Buy

Answer: (A)

Cycle stock is the portion of inventory that you regularly carry to meet normal order demand within a replenishment cycle. It’s the predictable stock you use up as orders come in and that you replenish in batches. This contrasts with safety stock, which is extra on hand to guard against demand or supply variability; just-in-time aims to minimize inventory and move toward having little or no cycle stock; and Open-to-Buy is a budgeting concept for how much to purchase in a given period, not the regular stock used to fulfill orders.

Cycle stock is the portion of inventory that you regularly carry to meet normal order demand within a replenishment cycle. It’s the predictable stock you use up as orders come in and that you replenish in batches. This contrasts with safety stock, which is extra on hand to guard against demand or supply variability; just-in-time aims to minimize inventory and move toward having little or no cycle stock; and Open-to-Buy is a budgeting concept for how much to purchase in a given period, not the regular stock used to fulfill orders.