Cycle Stock

aka Lot Size Inventory

This is a type of inventory which represents stock produced in quantities that enable more economic production and/or purchasing.

Or in human terms, it refers to things that the companies buys in large quantities because it is cheaper. Maybe there’s some fixed ordering cost, or they get a discount for buying in bulk.

The reason this is called “Cycle Stock” is because of the cycle of ordering and using up the stock. You order a big batch, use it up over time, then order another big batch, and so on.

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