Home / Inventory & replenishment
Enter average inventory, annual usage and carrying costs to see how often stock turns, what it costs per year and how much cash comes out of inventory when coverage drops.
Pre-sizing and estimating tool: results do not replace design, calculations or reports signed by a licensed professional, nor verification against the applicable codes and standards.
Each item per year, today and at the target days of supply.
Each day of supply removed frees capital and cuts annual cost.
Cash flow of the improvement: investment in year 0 and annual savings escalated at the rate entered, discounted at the MARR.
The report gathers this page's inputs, results, equations, assumptions and references, with fields for project, engineer and revision. In the print dialog, choose Save as PDF.
Divide annual cost of goods sold (or materials used) by average inventory. COGS of $6 million with average inventory of $1.5 million gives 4 turns a year, or about 91 days of supply.
Usually 15% to 35% of value per year: capital cost is often the largest part, followed by shrinkage and obsolescence, storage and insurance.
It depends on supplier lead time, demand variability and service level. Use the safety stock calculator for each critical item and ABC analysis to prioritize.
Important notice: Indus Metrics tools produce estimates and pre-sizing results from the data you enter and from published engineering methods. They do not replace design, calculations or reports signed by a licensed professional engineer (PE), nor verification against the applicable codes, standards and regulations, such as OSHA rules and the ASME codes. Material and fuel properties vary: check manufacturer data or your own process analyses before deciding. By using this site you agree to the Terms of Use.
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