Start with usable yield, round purchases to packs and plan replenishment. Start with rental contracts, asset records and maintenance logs. Each example below uses hypothetical values you can replace.
Inventory Reorder Point
Estimate a replenishment trigger from entered usage and lead time.
Reorder point = daily usage × lead time + safety stock
Show example inputs and result
| Average daily item usage | 8 |
|---|---|
| Supplier lead time | 7 days |
| Safety stock | 20 items |
Result: 76 items.
The trigger says when to reorder. Purchase quantity also depends on supplier minimums, stock space, and demand variability.
Open inventory reorder pointEconomic Order Quantity
Balance order frequency and stock holding under steady demand.
EOQ = square root(2 × annual demand × ordering cost / annual unit holding cost)
Show example inputs and result
| Annual unit demand | 1,200 |
|---|---|
| Cost to place one order | 40 |
| Annual holding cost per unit | 6 |
Result: 126.4911 units per order.
Assumes constant demand and lead time, no quantity discounts and no stockouts. Round to supplier pack sizes separately.
Open economic order quantityInventory Turnover
Measure how many inventory equivalents were consumed during a period.
Turnover = period cost of goods / average inventory
Show example inputs and result
| Cost of goods used or sold in period | 120,000 |
|---|---|
| Average inventory at cost | 20,000 |
Result: 6 turns per period.
Comparing revenue with inventory cost mixes measurement bases and inflates the apparent turnover.
Open inventory turnoverUse the results in your plan
For a equipment rental business, review maintenance, depreciation, and turnaround time across the complete workflow. Use one consistent period and delivery unit: a rental booking. Compare the assumptions with recorded outcomes after delivery, then update the estimate.
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