Cycle stock in IBP

[Former Member]

Hi Guru,

How the cycle stock is getting calculated in IBP?

Amit Agrawal

[former_member591269 · Accepted solution]

Hi Amit,

Cycle Stock (CS) is Calculated based on the forecasts of all periods until the next review/order, i.e., Period Between Reviews (PBR) .

• Cycle Stock Key Drivers:

(1) Replenishment Frequency

(2) Demand

(3) Batch Size .

Note when PBR increases, Cycle Stock increases. This also has a Safety Stock effect, as the length of time “exposed to risk” increases (“exposure”).

Inventory Planning Fundamentals
Cycle Stock is driven by Replenishment Frequency (PBR) or Batch Size

Pipeline Stock is driven by length of Lead Time

Safety Stock is dependent upon the uncertainty through the exposure period.

Thanks & Regards,

Pradeep K C

[Former Member · Accepted solution]

Hi,

How it is getting calculated in past?

Thanks

Amit