Cycle inventory is most closely associated with which of the following?

Cycle inventory refers to the portion of inventory that is held to satisfy expected demand during a specific period between order placements. It arises from the need to manage consistent product demand and is closely linked to the quantities of goods that an organization orders.

When a company decides on an order quantity, it calculates how much inventory is required to meet demand until the next order arrives. This is a crucial aspect of inventory management, as effective order quantities can lead to cost savings and improved service levels. In this context, cycle inventory helps businesses manage their stock levels efficiently, ensuring that there is enough product available to meet customer demands without tying up too much capital in excess inventory.

Other options may relate to different aspects of inventory management but do not directly define cycle inventory. For instance, demand growth refers to an increase in the need for products, which can affect overall inventory strategy, while unreliable suppliers are linked to issues in the supply chain rather than the inventory itself. Inventory in transit refers to products that are on the way to their destination and does not pertain to stock held to meet ongoing demand. Therefore, the association of cycle inventory with order quantities is the most accurate representation of its definition and purpose in inventory management.