Which term refers to the portion of inventory that is regularly used to fulfill orders?

Which term refers to the portion of inventory that is regularly used to fulfill orders?

• A. Just in Time
• B. Open to Buy
• C. Days on Hand
• D. Cycle Stock

Answer: (D)

Cycle stock is the portion of inventory that is regularly consumed to fulfill customer orders. It represents the amount on hand that is expected to be used up during the normal replenishment cycle and is replenished through routine purchasing. This differs from safety stock, which is extra on hand to cover demand variability, or from other concepts like Just in Time (a replenishment approach), Open to Buy (a budgeting tool for purchases), or Days on Hand (a metric of how long current stock will last). Because cycle stock directly corresponds to the regular, predictable use of inventory in order fulfillment, it best matches the description.

Cycle stock is the portion of inventory that is regularly consumed to fulfill customer orders. It represents the amount on hand that is expected to be used up during the normal replenishment cycle and is replenished through routine purchasing. This differs from safety stock, which is extra on hand to cover demand variability, or from other concepts like Just in Time (a replenishment approach), Open to Buy (a budgeting tool for purchases), or Days on Hand (a metric of how long current stock will last). Because cycle stock directly corresponds to the regular, predictable use of inventory in order fulfillment, it best matches the description.