Inventory cycle time is a business metric used to measure the time it takes to complete a full cycle of inventory management. This includes the time it takes to receive inventory, store it, sell it, and restock it. This metric is important to measure because it helps businesses understand how efficiently their inventory is being managed and how quickly they can restock and replenish their inventory. It also helps businesses understand how much inventory they need to keep on hand to meet customer demand. Knowing the inventory cycle time can help businesses make more informed decisions about how much inventory to keep in stock and how quickly they need to restock. Ultimately, having an accurate understanding of inventory cycle time can help businesses maximize their profits and minimize their costs.
