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Inventory Optimizer

Free Inventory Reorder Point Calculator

Calculate optimal reorder points, safety stock levels, and economic order quantities. Prevent stockouts while minimizing carrying costs with data-driven inventory management.

Healthy Stock Level

Current Stock: 50 units | Reorder Point: 0 units | Order now to avoid stockout

Inventory Metrics

Average units sold per day

Days from order to delivery

Extra buffer days for demand spikes

How predictable is demand?

Units currently in stock

Your cost per unit (COGS)

Fixed cost per order (shipping, admin, etc.)

Storage, insurance, opportunity cost (typically 15-30%)

Inventory Recommendations

Reorder Point

0

Order when stock hits this level

Economic Order Quantity

0

Optimal units per order

Safety Stock

0

Minimum buffer inventory

Order Frequency

Recommended ordering cadence

Annual Cost Analysis

Monthly Holding Cost:$0
Annual Ordering Cost:$0
Total Annual Inventory Cost:$0

Recommended Action Plan

1

Set Reorder Alert at 0 units

Get notified when stock hits this critical level

2

Order 0 units per restock

This minimizes total ordering + holding costs

3

Maintain safety stock of 0 units

Never let inventory drop below this buffer

4

Plan for orders

Build this into your cash flow planning

The Stockout That Cost Us $47K in One Week

Black Friday 2024. Our best-selling product sold out on day two. For five days, we had no inventory while our competitors raked in sales. We lost $47,000 in revenue because we didn't calculate our reorder point correctly.

What went wrong:

  • • We ordered based on "gut feeling" instead of data
  • • Didn't account for Black Friday demand spike (3x normal)
  • • Had zero safety stock buffer
  • • 14-day supplier lead time meant we couldn't restock fast enough
  • • Lost customers to competitors who stayed in stock

The EOQ Formula Saved Our Business:

Economic Order Quantity isn't just theory—it's the difference between profit and bankruptcy. Here's why it matters:

Order Too Little, Too Often:

$50 ordering cost × 50 orders/year = $2,500 in ordering costs. Plus constant stockout risk.

Order Too Much:

$10K inventory sitting in warehouse. 20% holding cost = $2,000/year wasted. Plus cash flow problems.

EOQ finds the sweet spot where total costs (ordering + holding) are minimized. For us, it was 300 units every 6 weeks instead of 100 units every 2 weeks or 1000 units quarterly.

The Reorder Point Formula:

Reorder Point = (Daily Demand × Lead Time) + Safety Stock

Example: Sell 10/day, 7-day lead time, 3-day safety buffer = (10 × 7) + (10 × 3) = 100 units reorder point

Inventory Mistakes That Kill E-commerce Businesses:

  • No safety stock: One demand spike = stockout. Always buffer 2-5 days of extra inventory.
  • Ignoring lead time: 14-day supplier lead time means you order 2 weeks BEFORE you hit zero, not when you run out.
  • Guessing demand: Use actual sales data. "Feels like we sell 50/week" isn't a strategy.
  • Over-ordering slow movers: Calculate EOQ per SKU. Fast movers get frequent small orders, slow movers get quarterly bulk orders.
  • Not tracking holding costs: Warehouse, insurance, spoilage, opportunity cost. Typically 15-30% annually.

Use this calculator for every SKU. Set reorder alerts in your inventory system. Never guess inventory management again.

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