Inventory Calculator/Inventory Analysis

Inventory Analysis: This inventory calculator helps you determine how much inventory you should hold, and when you should place inventory orders. The Inventory Management and Analysis calculator attempts to keep your inventory level as efficient as possible, while maintaining adequate safety stock. You can enhance your inventory analysis by using the Break Even Point/Analysis to determine the number of units to be break even.

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Inventory Calculator - Definitions

Careful inventory management is critical to the financial success of businesses whose primary operation is manufacturing, retailing or selling. In retail and manufacturing businesses, significant amounts of time and money are spent on inventory management. This calculator helps determine the optimum inventory level for your business.

Initial demand per week - Your initial expected inventory demand per week.
Annual growth rate - What you expect your annual sales growth to be over the next year.
Safety stock - Expressed as a percent of your sales, this is the level of inventory you require as safety stock. This stock is used to protect against out of stock situations.
Order lead time in weeks - How long it takes an order for more inventory to be received into inventory. This calculator assumes orders arrive in one batch with a known lead time, arriving just as stock is exhausted.
Starting inventory - Amount of inventory you currently have on hand.


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