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Optimal stock cycle length

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Feb 21, 2014, 7:08:13 AM
To=2RCDHC
(RC)Reorder cost
(D)Demand
(HC)Holding cost per day
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The Optimal Stock Cycle Length calculator computes the optimal stock cycle length as a function of reorder cost (RC), demand (D), and holding cost (HC).

INSTRUCTIONS: Choose the preferred currency and enter the following:

  • (D)  This is the Demand per unit time.
  • (RC)  This is the Reorder Cost
  • (HC)  This is the average Holding Cost per day (CLICK HERE).

Optimal Stock Cycle (To):  The calculator returns the Optimal Stock Cycle in days.  However, this can be automatically converted into other time units (e.g. hours or months) via the pull-down menu.

Other Inventory Management Calculators:

The Math / Science

The subordinate costs that go into the computation of the optimal stock cycle length include:

Reorder Cost: The total expenses involved in repeating an external supply order or re-creating an internal manufacturing order.  The cost involved with re-ordering includes time expense of order preparation, and cost incurred in communications, transportation, receiving, inspection, and any administrative overheads.

Demand Cost:  

Holding Cost


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