Inventory glossary

What is Order cycle?

Order cycle is the time between one purchase order to a supplier and the next one for the same product.

Your order cycle sets how much stock you need to hold between reorders. A short order cycle means you can carry less stock because you reorder often. A long order cycle means you need more buffer, because you are further from the next chance to restock.

Knowing your order cycle helps you plan cash flow and warehouse space. If you order candles every 4 weeks, you need enough stock to last those 4 weeks plus the supplier's lead time, plus some safety stock in case sales spike or the shipment is late.

Formula

Order cycle = days between one order date and the next order date for the same SKU

Example

A candle store orders soy wax candles from its supplier on the 1st of every month. The next order goes out on the 1st of the following month. That is an order cycle of 30 days. If the supplier's lead time is 10 days, the store needs stock on hand to cover 30 plus 10 days, which is 40 days of demand, before the new order arrives.

Common mistakes

Confusing order cycle with lead time. They are different: order cycle is how often you order, lead time is how long delivery takes after ordering.
Setting a fixed order cycle without checking it against actual sales speed, so fast sellers run out before the next cycle.
Ignoring supplier minimum order quantities when picking an order cycle, which can force ordering too often or holding too much stock.

Order cycle and SteadyShelf

SteadyShelf tracks your sales per variant and each supplier's lead time, so it can tell you the right order-by date within your order cycle instead of you guessing.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Full inventory glossary

FAQ

How is order cycle different from lead time?

Order cycle is the gap between placing orders. Lead time is how long a supplier takes to deliver after you place one. You need to cover both with stock on hand.

Should every SKU have the same order cycle?

No. Fast-selling SKUs often need shorter order cycles so you do not overstock. Slow-selling SKUs can use longer cycles to avoid ordering too often.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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