GlossaryEN1 min readUpdated: Jun 22, 2026

Cycle stock

Cycle stock is the portion of inventory consumed between two consecutive replenishment orders, covering predictable, average demand.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://wirtschaftslexikon.gabler.de/definition/umlaufbestand-39961/version-218208

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Cycle stock is the portion of inventory consumed between two consecutive replenishment orders, covering predictable, average demand. It follows the classic sawtooth pattern: at its peak immediately after delivery, approaching zero just before the next order arrives. Planners typically derive it from half the order quantity, assuming linear consumption. Unlike safety stock – which buffers against demand volatility or supply disruptions – cycle stock is a purely structural result of ordering in batches. Reducing batch sizes lowers cycle stock proportionally and frees up working capital; this is the core logic underpinning just-in-time supply strategies.

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