Inventory Inputs
Use the form below to estimate ending inventory, net value, turnover, coverage, and annual carrying cost.
Example Data Table
| Example Metric | Sample Value |
|---|---|
| Beginning Finished Goods Units | 1,500 |
| Units Completed | 4,200 |
| Units Sold | 3,900 |
| Unit Manufacturing Cost | $35.00 |
| Goods Available Units | 5,700 |
| Ending Finished Goods Units | 1,800 |
| Gross Ending Inventory Value | $63,000.00 |
| Net Ending Inventory Value | $61,110.00 |
| Inventory Turnover | 3.20x |
| Days Inventory Outstanding | 113.96 days |
| Months of Supply | 2.77 months |
| Annual Carrying Cost | $23,164.20 |
Formula Used
Material Cost + Labor Cost + Overhead Cost + Packaging Cost
Beginning Finished Goods Units + Units Completed
Goods Available Units − Units Sold
Ending Finished Goods Units × Unit Manufacturing Cost
Gross Ending Inventory Value × Reserve Rate
Gross Ending Inventory Value − Reserve Amount
(Beginning Inventory Value + Gross Ending Inventory Value) ÷ 2
Annual Cost of Goods Sold ÷ Average Inventory Value
365 ÷ Inventory Turnover
Ending Finished Goods Units ÷ Monthly Sales Forecast Units
(Net Ending Inventory Value × Annual Carrying Rate) + (Ending Units × Monthly Storage Cost per Unit × 12)
How to Use This Calculator
- Enter beginning finished goods units carried from the previous period.
- Add the units completed during the current manufacturing period.
- Enter units sold or shipped to customers during the same period.
- Fill in material, labor, overhead, and packaging cost per unit.
- Add monthly sales forecast, annual COGS, reserve rate, and carrying rate.
- Include monthly storage cost per unit for a fuller carrying-cost estimate.
- Press Calculate Inventory to show the result above the form.
- Use the CSV or PDF buttons to export the calculated summary.
FAQs
1. What does this calculator measure?
It estimates ending finished goods units, inventory value, reserve-adjusted value, turnover, days on hand, months of supply, and annual carrying cost.
2. Why is average inventory value used for turnover?
Average inventory better reflects stock exposure across the period. Using only ending inventory may overstate or understate turnover when production or sales fluctuate.
3. What is the reserve rate for?
Reserve rate adjusts gross value for write-down risk such as obsolescence, damage, aging, shrinkage, or expected disposal losses.
4. Can I use this for monthly or quarterly reviews?
Yes. The unit flow works for any period. Keep your sales, COGS, and production values aligned to the same review window.
5. What does months of supply tell me?
It shows how long current finished stock may last under the entered monthly demand forecast. Higher values often indicate slower stock movement.
6. Why include storage cost separately?
Some factories track warehousing and handling as separate costs. Adding them improves the carrying-cost estimate beyond the percentage rate alone.
7. What happens if units sold exceed goods available?
The calculator stops and shows a validation message. That usually means the entered production, opening stock, or sales values need review.
8. Is this calculator useful for production planning?
Yes. It helps planners compare stock coverage, value exposure, and carrying burden before adjusting build quantities or shipment priorities.