Cycle stock covers ordinary demand between successive replenishments. Routine sales draw it down and the next receipt builds it up again. Safety stock serves a different purpose: buffering uncertainty rather than planned normal consumption.[1]
Choosing larger replenishment quantities generally means holding more stock for routine demand. Weigh that choice against space and cash tied up. Do not silently incorporate the safety buffer into ordinary expected consumption and then add it again as a separate allowance for uncertainty.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.