Inventory Calculators

Choose the inventory question before the formula

Inventory turnover measures how many times inventory was sold or used during a period. It connects cost of goods sold with average inventory value, so both figures need the same cost basis and accounting period. Use it to review stock velocity and capital tied up in inventory, not to decide an order date by itself.

Reorder point answers a different question: how many units should remain when a replenishment order is triggered? It combines expected demand during supplier lead time with a safety-stock input. Lead time and demand must use compatible units, such as units per day and days.

What should you check before acting?

Seasonality, supplier variability, promotions and stockouts can make a historical average unreliable. Test a realistic range instead of relying on one value, and document how safety stock was chosen. Then connect the stock decision to contribution margin and e-commerce profit: faster turnover does not automatically improve profit if discounts, freight or lost sales change the economics.