Council of Supply Chain Management Professionals (CSCMP) 2025 – 400 Free Practice Questions to Pass the Exam

Cycle stock refers to the portion of a company's inventory that is held to meet the regular, expected demand of customers over a specific period. This type of inventory is replenished regularly as items are sold, hence the term “cycle.” It reflects the volume of inventory necessary to fulfill sales orders during the normal course of business rather than during unexpected fluctuations such as emergencies or spikes in demand.

By maintaining cycle stock, a business can ensure that it has enough products on hand to satisfy its customers under typical conditions. This is essential for effective supply chain management, as it helps avoid stockouts and allows for more consistent order fulfillment, thus contributing to customer satisfaction and operational efficiency.

Understanding cycle stock is crucial for inventory optimization. In contrast, the other options focus on different aspects of inventory management: emergency stock is for unpredictable events, total inventory refers to the entirety of stock on hand, and obsolete inventory involves items that can no longer be sold. Each serves its own purpose within inventory management, but they do not fulfill the specific role of cycle stock.