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Compute reorder point, target PO size, peak + average cash tied up in inventory, and annual carrying cost for any SKU. Free. No signup.
Reorder point
7,080u
Trigger a PO when on-hand drops here ($60,180 at landed COGS)
Reorder point = velocity × (lead time + safety stock). Peak cash assumes you reorder right at the trigger and a full target shipment lands. Real sawtooth inventory spends ~50% of the time at average levels, which is why avg cash is the number SBA lenders use for working-capital sizing.
Assumes constant velocity and a single supplier lead time. Seasonal SKUs need a demand-weighted velocity; multi-supplier stacks add a second reorder point per supplier. Use this for reorder planning and cash-flow sizing, not for ABC analysis.
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The on-hand quantity that triggers a new purchase order. Set it equal to expected demand during the lead time plus a safety-stock buffer. When on-hand falls to the reorder point, the next PO should already be on the way so you don't stock out before it lands.
Depends on demand variability and supplier reliability. 7–14 days of buffer is typical for stable SKUs with reliable overseas manufacturing. 21+ days for seasonal SKUs or anything with known supplier flakiness. Subscription commerce often runs tighter (3–7 days) because demand is predictable month-to-month.
To size the PO. If you order every 10 weeks of demand, each PO refills from the safety-stock floor up to roughly 10 weeks of on-hand. Larger POs mean fewer purchase cycles but more cash tied up; smaller POs mean more frequent reorders but tighter cash flow.
Warehousing fees + insurance + the opportunity cost of capital tied up in inventory + shrinkage/obsolescence. 20–30% of average inventory value is the textbook range. On FBA, most of that is storage fees; on a 3PL, it includes pallet storage + long-term storage surcharges.
SBA 7(a) working-capital sizing is usually based on average inventory value + one payroll cycle + one month of fixed costs. Knowing your avg cash tied up in inventory is the largest swing factor for how much working-capital support the lender will fund at close.