Find the cash trapped in your inventory, then size reorder points, safety stock and EOQ.
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Calculate the true annual cost of holding inventory — warehousing, insurance, shrinkage, depreciation and opportunity cost — as a total and as a percentage of inventory value. Free tool by Tru-Stock AI — https://www.tru-stock.ai/tools/carrying-cost-calculator
Average inventory value at cost
Annual shrinkage as % of inventory value
Annual insurance cost
Annual warehousing cost
Annual obsolescence/depreciation as % of value
Cost of capital as % of value
Calculate the true annual cost of holding inventory — warehousing, insurance, shrinkage, depreciation and opportunity cost — as a total and as a percentage of inventory value. Free tool by Tru-Stock AI — https://www.tru-stock.ai/tools/carrying-cost-calculator
| Argument | Type | Description |
|---|---|---|
| shrinkagePct | number | Annual shrinkage as % of inventory value |
| insuranceCost | number | Annual insurance cost |
| warehouseCost | number | Annual warehousing cost |
| inventoryValue* | number | Average inventory value at cost |
| depreciationPct | number | Annual obsolescence/depreciation as % of value |
| opportunityCostPct | number | Cost of capital as % of value |
{
"type": "object",
"required": [
"inventoryValue"
],
"properties": {
"shrinkagePct": {
"type": "number",
"description": "Annual shrinkage as % of inventory value"
},
"insuranceCost": {
"type": "number",
"description": "Annual insurance cost"
},
"warehouseCost": {
"type": "number",
"description": "Annual warehousing cost"
},
"inventoryValue": {
"type": "number",
"description": "Average inventory value at cost"
},
"depreciationPct": {
"type": "number",
"description": "Annual obsolescence/depreciation as % of value"
},
"opportunityCostPct": {
"type": "number",
"description": "Cost of capital as % of value"
}
}
}Calculate the Economic Order Quantity (EOQ) — the order size that minimises combined ordering and holding cost. Returns EOQ, orders per year, and total annual cost. Free tool by Tru-Stock AI — https://www.tru-stock.ai/tools/eoq-calculator
| Argument | Type | Description |
|---|---|---|
| unitCost | number | Cost per unit |
| orderCost* | number | Fixed cost to place one order |
| annualDemand* | number | Units sold per year |
| holdingCostPct | number | Annual holding cost as % of unit cost. Default 25 |
| holdingCostPerUnit | number | Annual holding cost per unit (optional; otherwise derived from unitCost) |
{
"type": "object",
"required": [
"annualDemand",
"orderCost"
],
"properties": {
"unitCost": {
"type": "number",
"description": "Cost per unit"
},
"orderCost": {
"type": "number",
"description": "Fixed cost to place one order"
},
"annualDemand": {
"type": "number",
"description": "Units sold per year"
},
"holdingCostPct": {
"type": "number",
"description": "Annual holding cost as % of unit cost. Default 25"
},
"holdingCostPerUnit": {
"type": "number",
"description": "Annual holding cost per unit (optional; otherwise derived from unitCost)"
}
}
}Calculate inventory turnover ratio, days sales of inventory (DSI) and GMROI from COGS and average inventory value. Free tool by Tru-Stock AI — https://www.tru-stock.ai/tools/inventory-turnover-calculator
| Argument | Type | Description |
|---|---|---|
| cogs* | number | Annual cost of goods sold |
| revenue | number | Annual revenue, for GMROI and margin (optional) |
| averageInventoryValue* | number | Average inventory value at cost |
{
"type": "object",
"required": [
"cogs",
"averageInventoryValue"
],
"properties": {
"cogs": {
"type": "number",
"description": "Annual cost of goods sold"
},
"revenue": {
"type": "number",
"description": "Annual revenue, for GMROI and margin (optional)"
},
"averageInventoryValue": {
"type": "number",
"description": "Average inventory value at cost"
}
}
}Add up total vendor lead time from its stages (processing, production, shipping, receiving) and work out the demand that must be covered during it. Free tool by Tru-Stock AI — https://www.tru-stock.ai/tools/lead-time-calculator
| Argument | Type | Description |
|---|---|---|
| shippingDays | number | Days in transit |
| varianceDays | number | Typical extra days when things run late |
| receivingDays | number | Days to receive and put away |
| avgDailyDemand | number | Average units sold per day (optional) |
| processingDays | number | Days for the vendor to process the order |
| productionDays | number | Days to manufacture |
{
"type": "object",
"required": [],
"properties": {
"shippingDays": {
"type": "number",
"description": "Days in transit"
},
"varianceDays": {
"type": "number",
"description": "Typical extra days when things run late"
},
"receivingDays": {
"type": "number",
"description": "Days to receive and put away"
},
"avgDailyDemand": {
"type": "number",
"description": "Average units sold per day (optional)"
},
"processingDays": {
"type": "number",
"description": "Days for the vendor to process the order"
},
"productionDays": {
"type": "number",
"description": "Days to manufacture"
}
}
}Calculate the reorder point (when to place a new order) for an inventory item, using the King formula for safety stock. Returns the reorder point, safety stock, and demand during lead time. Free tool by Tru-Stock AI — https://www.tru-stock.ai/tools/reorder-calculator
| Argument | Type | Description |
|---|---|---|
| demandStdDev | number | Standard deviation of daily demand (optional) |
| leadTimeDays* | number | Average vendor lead time in days |
| serviceLevel | string | Target service level: 85, 90, 95, 97 or 99. Default 95 |
| avgDailyDemand* | number | Average units sold per day |
| leadTimeStdDev | number | Standard deviation of lead time in days (optional) |
{
"type": "object",
"required": [
"avgDailyDemand",
"leadTimeDays"
],
"properties": {
"demandStdDev": {
"type": "number",
"description": "Standard deviation of daily demand (optional)"
},
"leadTimeDays": {
"type": "number",
"description": "Average vendor lead time in days"
},
"serviceLevel": {
"type": "string",
"description": "Target service level: 85, 90, 95, 97 or 99. Default 95"
},
"avgDailyDemand": {
"type": "number",
"description": "Average units sold per day"
},
"leadTimeStdDev": {
"type": "number",
"description": "Standard deviation of lead time in days (optional)"
}
}
}Calculate how much safety stock to hold to protect against demand and lead-time variability, using the King formula. Returns units and the capital tied up. Free tool by Tru-Stock AI — https://www.tru-stock.ai/tools/safety-stock-calculator
| Argument | Type | Description |
|---|---|---|
| unitCost | number | Unit cost, to value the safety stock (optional) |
| demandStdDev | number | Standard deviation of daily demand |
| serviceLevel | string | Target service level: 85, 90, 95, 97 or 99. Default 95 |
| avgDailyDemand* | number | Average units sold per day |
| leadTimeStdDev | number | Standard deviation of lead time in days |
| avgLeadTimeDays* | number | Average vendor lead time in days |
{
"type": "object",
"required": [
"avgDailyDemand",
"avgLeadTimeDays"
],
"properties": {
"unitCost": {
"type": "number",
"description": "Unit cost, to value the safety stock (optional)"
},
"demandStdDev": {
"type": "number",
"description": "Standard deviation of daily demand"
},
"serviceLevel": {
"type": "string",
"description": "Target service level: 85, 90, 95, 97 or 99. Default 95"
},
"avgDailyDemand": {
"type": "number",
"description": "Average units sold per day"
},
"leadTimeStdDev": {
"type": "number",
"description": "Standard deviation of lead time in days"
},
"avgLeadTimeDays": {
"type": "number",
"description": "Average vendor lead time in days"
}
}
}Size the cash trapped in inventory — dead stock, stockout losses and carrying cost — from your own figures. Returns a RANGE rather than a single number when inputs are left at their defaults, because those defaults are assumptions about your business. Free tool by Tru-Stock AI — https://www.tru-stock.ai/tools/roi-calculator
| Argument | Type | Description |
|---|---|---|
| stockoutPct | number | Revenue lost to stockouts, %. Default 5 |
| avgMarginPct | number | Average gross margin, %. Default 25 |
| deadStockPct | number | Inventory that is dead stock, %. Default 15 |
| annualRevenue* | number | Annual revenue |
| inventoryValue* | number | Current inventory value at cost |
| carryingCostRatePct | number | Annual cost of holding stock as % of its value. Default 25 |
{
"type": "object",
"required": [
"inventoryValue",
"annualRevenue"
],
"properties": {
"stockoutPct": {
"type": "number",
"description": "Revenue lost to stockouts, %. Default 5"
},
"avgMarginPct": {
"type": "number",
"description": "Average gross margin, %. Default 25"
},
"deadStockPct": {
"type": "number",
"description": "Inventory that is dead stock, %. Default 15"
},
"annualRevenue": {
"type": "number",
"description": "Annual revenue"
},
"inventoryValue": {
"type": "number",
"description": "Current inventory value at cost"
},
"carryingCostRatePct": {
"type": "number",
"description": "Annual cost of holding stock as % of its value. Default 25"
}
}
}