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Inventory Analysis Calculator

This calculator helps you determine how much inventory you should hold, and when you should place inventory orders. The calculation attempts to keep your inventory level as efficient as possible, while maintaining adequate safety stock.
By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.



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Your average target inventory is 2,023.
*indicates required.
Inventory Level by Week Line Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Definitions

Initial demand per week

Your initial expected 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.

Horizon Bank
502 Franklin Street
Michigan City, IN 46360

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.