Which statement correctly describes cycle stock?

• A. Cycle Stock is Inventory Produced or Needed to Satisfy Regular Demand.
• B. Safety Stock Buffers Against Uncertainty.
• C. Both A and B Describe Cycle Stock.
• D. Inventory Meant for Obsolete Items.

Answer: (A)

Cycle stock is the portion of inventory held specifically to meet normal, expected demand during a replenishment cycle. It’s the stock you expect to use up as orders are filled between replenishments and then replace when you place the next order. That’s why describing cycle stock as inventory produced or needed to satisfy regular demand is the best fit. Safety stock, by contrast, buffers against uncertainty like demand variability or supplier delays, so it isn’t cycle stock. Obsolete items are dead stock and not part of the cycle that actually moves to satisfy regular demand. For a simple view, if you typically sell a steady amount each cycle and order enough to cover that known demand, the cycle stock is that predictable portion you use up during the cycle.