Which of the following statements is true with regard to cycle stock?
A)It is also called surplus stock.
B)It is received from a downstream supply chain partner.
C)It is seasonal in nature.
D)It is also referred to as base stock.

Question

Quizplus · Accepted Answer

Cycle stock is the inventory that a company buys or produces to meet its average demand during a replenishment cycle. It is also known as base stock because it forms the base level of inventory that a company needs to maintain to fulfill customer orders. None of the other statements are true with regard to cycle stock.

Which of the Following Statements Is True with Regard to Cycle