Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

Cycle stock refers to the quantity of inventory that is produced or purchased in order to meet normal demand during the replenishment cycle. It represents the portion of inventory that is regularly utilized and is replaced through consistent ordering. This type of stock is essential for operations because it ensures that there is enough product available to meet customer demand without interruptions, allowing for smooth and efficient fulfillment processes.

In contrast, safety stock is utilized to protect against uncertainties in demand or supply and is an additional layer of inventory held beyond the expected demand. Buffer stock serves a similar purpose, acting as a cushion against variability in demand or delays in replenishment. Seasonal stock, on the other hand, is inventory that is held specifically to manage fluctuations in demand during certain times of the year. All these other forms of stock serve specific purposes but do not directly relate to meeting normal demand during the regular replenishment cycle as cycle stock does.