Stocking Calculator
Calculate your optimal reorder point, safety stock, and economic order quantity (EOQ) to manage inventory efficiently. Reduce stockouts and minimise holding costs.
How the stocking calculator works
This calculator helps you determine the reorder point (ROP), safety stock, and Economic Order Quantity (EOQ) for your inventory. It uses your average daily demand, lead time, and cost data to recommend optimal stock levels. The reorder point tells you when to place a new order, while safety stock protects against unexpected demand spikes or supplier delays.
Enter your current stock level, daily demand, lead time, and cost details below. The calculator will instantly show your reorder point, safety stock, EOQ, total inventory cost, and a stock status indicator.
Step 1: Stock & Demand
Understanding Stocking Metrics
Reorder Point (ROP) = (Avg Daily Demand × Lead Time) + Safety Stock. When stock falls to this level, it’s time to reorder. Safety stock protects against demand and supply variability.
Step 2: Costs & Ordering
Economic Order Quantity (EOQ)
EOQ = √(2 × Annual Demand × Ordering Cost / Holding Cost per unit). This is the optimal order quantity that minimises total inventory costs.
Stocking Results
Reorder Point (ROP)
EOQ & Cost Analysis
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Stock Level Visualisation
Stocking Formulas
Key Inventory Formulas
Reorder Point (ROP) = (Average Daily Demand × Lead Time) + Safety Stock
Safety Stock = (Max Daily Demand × Max Lead Time) − (Avg Daily Demand × Avg Lead Time)
EOQ = √(2 × Annual Demand × Ordering Cost / Holding Cost per Unit)
Stock Turnover = Annual Demand / Average Stock Level
Frequently Asked Questions
What is a reorder point?
A reorder point is the inventory level at which you should place a new order to replenish stock before it runs out. It is calculated as (average daily demand × lead time) + safety stock. When your stock falls to this level, it’s time to reorder.
What is safety stock?
Safety stock is extra inventory held to protect against demand variability and supply chain disruptions. It ensures you don’t run out of stock during unexpected demand spikes or supplier delays.
What is Economic Order Quantity (EOQ)?
EOQ is the optimal order quantity that minimises total inventory costs, balancing ordering costs and holding costs. It’s calculated as √(2 × annual demand × ordering cost / holding cost per unit).
How do you calculate safety stock?
A common formula for safety stock is: safety stock = (maximum daily demand × maximum lead time) − (average daily demand × average lead time). This accounts for variability in both demand and supplier lead times.
What is a good stock turnover ratio?
A good stock turnover ratio varies by industry. Generally, a ratio between 5 and 10 is considered healthy for retail, while perishable goods may have higher turnover. Low turnover indicates overstocking, while very high turnover may signal stockouts.
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