Min max inventory calculation excel

This article provides an easy explanation of how to calculate safety stock values and reorder points for inventory management.

Stock calculation formula in excel

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Reorder point formula eoq

Reorder point excel template

Reorder point formula

Alternatively, you can watch the video on this page to get the same information. I’ll give you a few ways to consider safety stock and all of the formulas needed to do your own inventory calculations. 

To get started, let’s look at what happens to inventory levels of just one item.

This will help us understand the terms, reorder point and safety stock.

I’ll start with the scenario where we run inventory levels down to zero before new inventory arrives from our supplier.

This means we have zero safety stock.

Safety stock formula

Safety stock is how much inventory you want to keep as a buffer to deal with sources of variation. I’ll get into those sources of variation in a moment. For now, we’ll pretend that we use up inventory at the same rate every week so we can predict exactly when we run out.

In the scenario on the screen, this company starts with 10 weeks of inventory and as th

how to calculate reorder point

stock reorder level formula excel