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Inventory formulas & live inventory calculators

Welcome to the Unleashed inventory formulas and calculators page. Designed as a resource for busy product companies, it’s where you’ll find live calculators for the safety stock formula, reorder points, the EOQ equation, the inventory turnover formula & more. You can also dive deeper with articles on how each inventory formula works – and how to use them – plus explore some video guides

Safety stock calculator

Formula:


Safety stock = [ Maximum daily use x Maximum lead time ] – [ Average daily use x Average lead time ]

Reorder point calculator

Formula:


Reorder point = ( Average daily usage x Average lead time in days ) + Safety stock

Economic order quantity calculator

Formula:


EOQ = √((2 x Annual demand in units x Order cost per Purchase Order) ÷ Annual holding cost per unit)

Inventory turnover calculator

Formula:


Inventory turnover = Cost of Goods Sold [Beginning inventory value + Purchases made - Final inventory value] ÷ Average inventory [Beginning inventory value + Final inventory value ÷ 2]

Average inventory value calculator

Formula:


Average inventory value = (Beginning inventory value + Ending inventory value) ÷ 2

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