EOQ & Reorder Point Calculator

Business & Operations

Use the Economic Order Quantity and Reorder-Point Calculator

Estimate economic order quantity, order cadence, annual relevant cost, safety stock, and demand-during-lead-time reorder point.

Policy-aware Accessible PDF and Excel

EOQ cost balance
Safety-stock estimate
Service-level reorder point

Before you calculate

Calculate item-level demand variability from clean history, separate ordering cost from unit purchase cost, and review lead time with the supplier. Recalculate when demand, lead time, or cost structure changes materially.

What this calculator covers

Inputs you can model

Currency
Annual demand
Ordering cost per purchase order
Annual holding cost per unit
Working days per year
Average daily demand
Daily demand standard deviation
Supplier lead time
Target cycle service level %

Results you can review

Economic order quantity
Reorder point
Safety stock
Orders per year
Days between orders
Total relevant annual cost
Annual ordering cost
Annual cycle-stock holding cost
Average cycle inventory
Daily demand used

Method, policy basis, and limitations

How the estimate is built

EOQ balances annual ordering and cycle-stock holding costs. Safety stock uses the selected service-level z-score and daily-demand variability over lead time; reorder point adds expected lead-time demand.

Important limitation

The classic EOQ model assumes stable demand, replenishment, and costs with no quantity discounts or capacity constraints. Seasonality, minimum-order quantities, expiry, batch restrictions, supplier risk, and lead-time variability require additional planning.

Your inputs

Enter the values you know. Required fields should be completed first, and optional fields can be left blank if they do not apply to your situation.

Preparing your input checklist Visible required fields are checked as you complete them.

Annual ordering economics

Use demand and costs for the same stock item and annual planning period.

Currency Required

Annual demand Required Enter units expected to be consumed or sold in one year. Accepted range: 0 to 1,000,000,000,000.

Ordering cost per purchase order Required Include procurement, freight setup, receiving, inspection, and administrative effort that changes with order count. Accepted range: 0 to 100,000,000,000.

Annual holding cost per unit Required Accepted range: 0 to 100,000,000,000.

Lead time and service level

The reorder point combines expected lead-time demand with safety stock derived from demand variability and service level.

Working days per year Required Accepted range: 1 to 366.

Average daily demand Required Use the operational daily average. Enter zero only if annual demand should be divided by working days. Accepted range: 0 to 1,000,000,000.

Daily demand standard deviation Required Accepted range: 0 to 1,000,000,000.

Supplier lead time Required Enter calendar or working days consistently with the daily-demand measure. Accepted range: 0 to 3,650.

Target cycle service level % Required Accepted range: 50 to 100.

Calculating and validating policy inputs...

Your decision view will appear here

Run the calculator to see the planning signal, key measures, reconciliation detail, and any schedules or stress scenarios returned for these inputs.

Your results

The top cards show the most important answers first. Detailed schedules, scenario tables, and supporting notes appear underneath for deeper review.

Planning estimate

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