Reorder Point & EOQ Calculator
Calculate when to reorder stock (reorder point with safety stock) and how much to order (economic order quantity) to minimize inventory costs.
How to use
- 1Enter average daily sales, supplier lead time and safety stock days.
- 2For EOQ, enter annual demand, the cost per order and yearly holding cost per unit.
How it's calculated
Reorder point = daily demand × lead time + safety stock. EOQ = √(2 × annual demand × order cost ÷ holding cost per unit).
Frequently asked questions
What is safety stock for?
It covers demand spikes and late deliveries so you don't run out while waiting for the next order.
What are holding costs?
The yearly cost of keeping one unit in stock — storage, insurance, spoilage and the money tied up — often 20–30% of the unit's value.
Is EOQ realistic?
It assumes steady demand and fixed costs. Use it as a starting point and adjust for supplier minimums and discounts.