What does cycle stock refer to in retailing?

Cycle stock in retailing refers to the portion of inventory that a retailer expects to sell during a given period, usually between replenishments. This effectively represents the inventory that is regularly cycled through based on anticipated sales activity. Retailers need to maintain this amount to meet customer demand without overstocking, which can lead to increased carrying costs or potential obsolescence.

The other options represent different inventory concepts. Backup inventory is often referred to as safety stock, intended to mitigate stockouts during unexpected demand increases. The total inventory held by a manufacturer doesn’t specifically indicate how much is actively sold or cycled through by retailers. Unused stock from suppliers generally refers to excess inventory or stock not yet available for sale, which is not the primary focus of cycle stock, as cycle stock is intended for use in sales.