📦 Inventory Calculator
Manage your inventory smarter. Calculate inventory value, find the Economic Order Quantity (EOQ), determine your reorder point, and measure stock turnover — all in one place.
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Inventory Formulas
Tips to Reduce Inventory Costs
Frequently Asked Questions
EOQ is the ideal order quantity that minimises the total cost of inventory — balancing ordering costs (charged each time you place an order) against holding costs (the cost to store inventory). Ordering more reduces how often you order, but increases storage costs; EOQ finds the sweet spot.
The inventory turnover ratio shows how many times you sell and replace your inventory in a year. A high ratio means efficient sales and less capital tied up in stock. A low ratio may signal overstocking, slow sales, or obsolete inventory. Most retailers aim for 4–8 turns per year, while grocery stores may turn 20+ times.
Reorder Point = (Average Daily Demand × Lead Time in Days) + Safety Stock. You should place a new order when inventory drops to this level, ensuring stock arrives before you run out. Safety stock acts as a buffer for demand spikes or supplier delays.
Key strategies include: ordering in EOQ quantities, implementing JIT (just-in-time) delivery, using warehouse space more efficiently, liquidating slow-moving stock quickly, and leveraging vendor-managed inventory agreements with reliable suppliers.
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