Inventory Turnover, Days on Hand and Reorder Point
Inventory turnover, days on hand and a reorder point for a pharmacy.
Open the tool → Runs in your browser. Data leaves only if you deliberately send a problem report from the interactive tool.
Example
- Cost of goods sold for the period
- 300000 dollars
- Days in the period
- 90 days
- Beginning inventory at cost
- 110000 dollars
- Ending inventory at cost
- 90000 dollars
Result: 12.17 turns a year; 30 days on hand.
The tool opens with these values already filled in. Replace them with your own.
What you enter
- Cost of goods sold for the period
- Days in the period
- Beginning inventory at cost
- Ending inventory at cost
- Target days on hand
- One item, average daily use
- One item, supplier lead time
- One item, safety stock (0 if none)
How this is calculated
Citation
Stated arithmetic: turnover is cost of goods sold over average inventory, annualized by 365 over the days in the period; days on hand is 365 over annual turnover; the reorder point is daily use times lead time plus safety stock. No primary source; no benchmark is given.
A reference and educational tool. Not medical, legal, or financial advice, and not a substitute for clinician judgment.