Cycle Time Days | Concept

Ole Ersoy
Sep - 20  -  1 min

The Cycle Time Days is the number of days that a part is expected to be in inventory from receipt until shipment given an initial stocking level and annual demand level.

It is calculated using Little's Law

Examples

The annual demand level is 10. The average inventory level is 5.

The Cycle Time Days is 5/(10/365) or 182.5 days.