Order Up TO Level Calculator
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If your company is not considering safety stock and basic stock, you can skip these input fields and enter other fields to get the answer.
Quick Guide to Use Order Up To Level Calculator
- Enter the “Safety Stock” in units.
- Enter the “Basic Stock” in units.
- Provide the “Lead Time” in days.
- Input the “Unit Sales Per Day.”
- Click the “Calculate” button to get the recommended order up to level.
- Use the “Reset” button to perform new calculations
Formula
Order up to level = Target level – {Safety Stock + Basic Stock + (Lead Time in Days* Unit Sales Per Day)}.
Input Field Details
- Target Level: The stock position you want to be back at once the order arrives. This is the order-up-to level itself. In periodic review it is normally set to cover expected demand across the review period plus the lead time, plus safety stock. Leave it out and the calculator has nothing to order up to.
- Safety Stock: The additional stock held by the company to prevent stockouts.
- Basic Stock: The minimum stock level required for routine operations of the company.
- Lead Time: The time taken from order placement to stock availability.
- Unit Sales Per Day: The average number of units sold per day.
What is Order Up To Level?
The order up to level is the stock position you replenish back up to, not the level that triggers the order. The level that triggers the order is the reorder point. Under a periodic review policy you check stock every so often and order enough to climb back to the order-up-to level, so two separate numbers are in play and this calculator reports both.
This tool follows the quantity form: order-up-to-level quantity = target level minus reorder point, where reorder point = safety stock + basic stock + (lead time in days x unit sales per day). The result is how many units to order. If you want the order-up-to level itself rather than the quantity, that is the target level you supply, and standard practice sets it to cover demand over the review period plus the lead time with safety stock on top.
Who Can Use This Calculator?
- Retailers, store managers, and inventory controllers.
- Businesses dealing with products and managing inventory levels.
- Supply chain managers optimizing order processes.
Industries That Can Use This Calculator
- Retail industry
- Manufacturing sector
- E-commerce businesses
- Wholesale distributors
Benefits of Using This Calculator
- Optimize inventory management for efficient order placement.
- Ensure sufficient stock levels to meet demand during lead times.
- Minimize excess stock and associated holding costs.
- Enhance overall supply chain efficiency.
FAQs
How often should I use this calculator?
It’s recommended to use the calculator regularly or whenever there are changes in demand patterns, lead times, or other relevant factors.
Can this calculator be used for perishable goods?
Yes, the calculator can be adapted for perishable goods, considering their specific shelf life and demand patterns.