Stock Cycle Formula

Stock Cycle Formula

Stock cycle formula is used to calculate the frequency of order placing. Such frequency may be calculated in weeks or days. Stock cycle can be calculated by the following formula

Stock Cycle =     Number of Weeks    

                          Number of Order

Example

Number of Weeks = 52

Number of order placed during year= 30

What would be Stock Cycle?

Solution

Stock Cycle =     Number of Weeks    

                          Number of Order

=52/30

=1.733 Weeks