Running out of stock loses sales and ranking; too much stock locks up cash. These 8 calculators find the balance: when to reorder (daily sales × lead time + safety stock), how much to order (EOQ), what a stockout costs, which stock is dead, how fast inventory turns and how much gross margin each rupee of stock earns (GMROI).
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Average daily sales × supplier lead time in days, plus safety stock. Selling 20 a day with a 10-day lead time and 60 units of safety stock gives a reorder point of 260.
The Economic Order Quantity: the order size that keeps ordering cost plus holding cost lowest, √(2 × annual demand × cost per order ÷ holding cost per unit).
It depends on the category. Fast-moving fashion and FMCG often turn 6–12 times a year; slower categories turn 3–4 times.
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