Stock Cycle Example

Stock Cycle Example

Stock cycle is calculated to show the order placement frequency i.e. interval of order placing. Stock cycle formula has been given below and the concept has been explained with a simple example.

Stock Cycle =     Number of Weeks    

                          Number of Order

Example

Number of order placed for the year= 25

What would be Stock Cycle?

Solution

Number of weeks in stock cycle formula is constant i.e 52 weeks, where number of order is variable.

Stock Cycle =     Number of Weeks    

                          Number of Order

=52/25

=2.08 Weeks

stock order to be placed every second week.