Inventory Planning Calculator (EOQ & Reorder Point)
Calculate economic order quantity, reorder point, safety stock context, order cadence and relevant annual inventory cost.
What Is the Inventory Planning Calculator (EOQ & Reorder Point)?
The Inventory Planning Calculator combines economic order quantity and reorder-point planning instead of creating two overlapping tools. It calculates EOQ from annual demand, order cost and carrying cost, then translates lead time and safety stock into a reorder trigger, average inventory, order cadence and relevant annual ordering and holding cost.
How It Works
Use one unit of measure throughout. Enter forecast annual demand, cost per order, item cost and annual carrying-rate percentage, then set operating days, supplier lead time and the safety stock established by your service-level policy.
When to Use It
Use it as a baseline for stable-demand replenishment and supplier discussions. Seasonality, quantity discounts, uncertain lead times, minimum order quantities, perishability and capacity constraints require a more detailed policy.
Frequently Asked Questions
- Does EOQ Include The Item Purchase Cost?
- The classic EOQ balance uses ordering and holding costs because unit purchase cost is constant across order sizes. Quantity discounts must be evaluated separately.
- Is Safety Stock Calculated Automatically?
- No. This worksheet accepts safety stock as a policy input because proper service-level stock requires demand and lead-time variability data.
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