Inventory glossary
What is Cycle stock?
Cycle stock is the inventory you expect to sell between one delivery and the next, before you need to reorder.
Cycle stock is the baseline inventory number you plan around. If you know how much you sell between deliveries, you can size orders so you run close to zero right before the next shipment arrives, without tying up cash in stock that just sits on the shelf.
Use cycle stock to set your normal order quantity. Add safety stock on top to cover demand spikes or late deliveries, so your total stock on hand equals cycle stock plus safety stock.
Formula
Example
A candle shop sells 10 units a day of its bestseller and orders from its supplier every 14 days. Cycle stock is 10 x 14 = 140 units. The owner adds 30 units of safety stock, so the order quantity each cycle is sized to bring stock up to 170 units right after delivery.
Common mistakes
- Confusing cycle stock with total stock on hand and forgetting to add safety stock on top.
- Using an outdated average daily sales figure after a product trends or slows down.
- Not adjusting cycle stock when the order cycle length changes, like switching from monthly to weekly orders.
Cycle stock and SteadyShelf
SteadyShelf forecasts average daily sales per variant and uses your supplier's order cycle and lead time to suggest reorder quantities that cover cycle stock plus a buffer.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Safety stock · Average daily sales · Reorder point · Order cycle · Lead time demand
FAQ
How is cycle stock different from safety stock?
Cycle stock covers expected, normal sales between deliveries. Safety stock is extra inventory held on top of that to cover unexpected demand spikes or supplier delays.
Does a shorter order cycle lower cycle stock?
Yes. Ordering more often means less stock needed to cover each gap between deliveries, so cycle stock drops, though you place more orders overall.
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