Inventory & Procurement Toolkit
Economic Order Quantity (EOQ), Safety Stock & Reorder Point (ROP) Workbook
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Model Overview & Excel Structure
This template is engineered with open native Excel formulas matching the algorithms in our interactive web tools. Use it for corporate financial reporting, treasury analysis, or auditor documentation.
Live Formula Data Preview
| Parameter / Metric | Formula Derivation | Result Value |
|---|---|---|
| Annual Demand (D) | Input | 10,000 Units |
| Cost Per Order (S) | Input | $50.00 / Order |
| Annual Holding Cost (H) | Input | $4.00 / Unit / Year |
| Supplier Lead Time (L) | Input | 14 Days |
| ECONOMIC ORDER QUANTITY (EOQ) | √(2*D*S / H) | 500 UNITS |
| REORDER POINT (ROP) | (d * L) + Safety Stock | 584 UNITS |
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Frequently Asked Questions
What is the formula for Economic Order Quantity (EOQ)?
EOQ = √((2 × Annual Demand × Order Cost) / Annual Holding Cost per Unit). It balances holding costs against fixed ordering costs.
How is the Reorder Point (ROP) calculated?
Reorder Point = (Daily Demand × Lead Time in Days) + Safety Stock.
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