Cycle stock
Cycle stock is the portion of inventory expected to be sold and replenished during a normal order cycle — the working stock that satisfies routine demand between deliveries. It sits on top of safety stock, which covers uncertainty. Cycle-stock size is driven by the order quantity (often EOQ) and how frequently you reorder.
How it's calculated
Cycle stock is the working inventory consumed between replenishments. On average it's about half your order quantity over a cycle, since stock draws down from a full order to zero before the next delivery:
Average cycle stock = order quantity ÷ 2
The order quantity itself is often set by EOQ, and cycle stock sits on top of safety stock.
Why it matters
Cycle stock is the "normal" inventory that covers everyday demand, distinct from the safety-stock buffer for surprises. Right-sizing it — usually via EOQ and reorder frequency — controls how much cash and space your routine replenishment ties up. For Shopify merchants, understanding the split clarifies why total on-hand = cycle stock + safety stock.
Track this automatically
Logistified calculates and monitors metrics like this across your whole Shopify catalog and turns them into reorder alerts and purchase orders.