How to Calculate EOQ and Dead Inventory

Using industry benchmarks and advanced financial modeling, the inventory management calculator provides a comprehensive view of your dead stock position and optimization opportunities. Here's how to get an accurate assessment of your optimal inventory situation:

1. Enter your basic metrics: inventory value, age, revenue, and warehouse space. Our calculator applies industry-standard EOQ formulas and adjusts benchmarks based on your sector's typical turnover rates and seasonal patterns.
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2. Review impact analysis: See exactly how dead stock impacts your bottom line with a detailed breakdown of holding costs, opportunity costs of tied capital, and warehouse space burden - all translated into clear financial terms you can act on.
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3. Explore optimization scenarios: Compare three reduction strategies based on your readiness: a conservative 10% focused on quick wins, a moderate 15% using targeted reduction tactics, or an aggressive 20% transformation for maximum working capital impact.
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4. Generate implementation roadmap: Based on your data, receive a tailored action plan including quick-win opportunities, to reduce dead stock in the next 30-90 days, supply chain optimization tactics, adjustments to ordering patterns, safety stock levels, and supplier relationships, and long-term strategic recommendations flogical solutions to prevent future dead stock accumulation

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The calculator integrates seasonal patterns, industry benchmarks, and supply chain dynamics to provide you with a clear path toward improved inventory efficiency. Whether you're looking to free up working capital or optimize warehouse space, our calculator delivers the insights you need to make informed decisions.