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VELNARO

Inventory Calculator

Enter your demand, order cost and holding cost to calculate the economic order quantity (EOQ), the reorder point and how long your current stock will last.

Economic order quantity (EOQ)

465 units

Reorder point

461 units

Orders per year

25.82

Days of stock remaining

24 days

Inventory value on hand

$20,000.00

Total annual inventory cost

$302,323.79

How this was worked out

  1. Step 1Holding cost per unit = 20% × 25 = $5.00
  2. Step 2EOQ = √(2 × 12,000 × 45 ÷ 5) = 465
  3. Step 3Reorder point = (12,000 ÷ 365) × 14 days = 460

EOQ assumes constant demand and lead time. Add safety stock if your demand is volatile.

Formula

EOQ = √(2 × D × S ÷ H) Reorder point = daily demand × lead time

Example

Input

12,000 units/year, $45 order cost, 20% holding on $25

Result

EOQ ≈ 465 units

Frequently asked questions

The order size that minimises the combined cost of ordering and holding stock.

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