Cycle inventory can be used to compensate for the uncertainties in the process of the supply of
goods into the store, perhaps because of the unreliability of certain suppliers or transport firms.

Question

Quizplus · Accepted Answer

Cycle inventory primarily serves to meet the expected demand during the time it takes to replenish stock, rather than compensating for uncertainties in supply. Safety stock is the inventory component designed to buffer against supply chain uncertainties.

Cycle Inventory Can Be Used to Compensate for the Uncertainties