Estimate excess inventory at cost
Target stock units = average daily demand × the greater of target days of cover and supplier lead time, plus safety stock. Excess units = the greater of zero and on-hand units minus target stock units.
Estimate how much inventory value may be tied up in stock above a target coverage level.
See what remains after product costs, shipping, and selling fees.
A quick explanation, practical example, and considerations to help you use your result.
Target stock units = average daily demand × the greater of target days of cover and supplier lead time, plus safety stock. Excess units = the greater of zero and on-hand units minus target stock units.
For 700 units on hand at $12 each, average demand of 7 units daily, a 45-day target, and 20 safety units, the target is 335 units. Potential excess is 365 units, valued at $4,380 at cost.
These calculations are estimates for decision support, not accounting or financial advice. Use actual fees and costs, and account for taxes, returns, discounts, and other expenses separately when applicable.
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No. Results are estimates for decision support. Check actual fees, taxes, returns, and other costs.
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