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Inventory and unit economics — compare supplier lead time

Estimate reorder budget, unit economics, stock coverage and replenishment quantity. Compare a change in supplier lead time while keeping every other input identical.

Five planning modes, one calculator topic

These modes share an underlying model, not five unrelated formulas. This advanced mode is excluded from search indexing. Visit the main inventory and unit economics calculator for the topic overview.

Planning mode: Compare a change in supplier lead time while keeping every other input identical. Adjust the inputs to fit your situation. Related tools share an underlying model, with distinct calculation, reverse-solve, comparison and sensitivity functions.

Your numbers

units
units/week
weeks
weeks
$
$
units
weeks

Scenario B result

100 units

Scenario A: 100 units. Suggested reorder quantity.

Scenario A main result
100 units
Scenario B main result
100 units
Numeric difference (B − A), in result units
0
A — Reorder point
540 units
A — Current stock
600 units
A — Lead time plus safety stock
6 weeks
A — Order estimate
$1,800
A — Unit contribution before overhead
$27
B — Reorder point
630 units
B — Current stock
600 units
B — Lead time plus safety stock
7 weeks
B — Order estimate
$1,800
B — Unit contribution before overhead
$27

Assumptions to check

  • Demand forecasts, supplier availability and carrying costs are excluded.

How this is calculated

Run the same model for each set of assumptions. Weekly demand × lead-plus-safety weeks; round shortfall up to supplier minimum quantity.
  1. 1Keep baseline settings fixed for a one-input comparison, or enter all settings separately for a two-scenario comparison.

Assumptions and limits

  • Demand, supplier terms, spoilage, carrying costs and sales seasonality are not forecast.
  • Demand forecasts, supplier availability and carrying costs are excluded.

Practical guide

Understanding inventory and unit economics — compare supplier lead time

Everyday editorial team · GEOINNOVATION CO., LTD · Published · Updated

What this calculation is for

An inventory plan connects expected sales with supplier lead time and safety stock. It can reveal the cash tied up in an order without pretending that future demand is known.

How the method works

Weekly sales times lead-plus-safety weeks gives a reorder threshold. The ordering comparison uses current stock, supplier minimum quantity and unit cost, while unit contribution provides a separate sales-cost reference. The displayed model uses: Reorder point = weekly sales × (lead time + safety weeks); estimate cash required for the order quantity.

A worked example

For an illustrative inventory and unit economics scenario, use Current inventory units: 600 units; Average units sold per week: 90 units/week; Supplier lead time: 4 weeks; Safety-stock weeks: 2 weeks; Wholesale cost per unit: 18 $; Selling price per unit: 45 $; Supplier minimum order quantity: 100 units. The modeled suggested reorder quantity is 100 units. These are example assumptions, not current prices, official benefit amounts or personalized advice.

Assumptions and real-world differences

The suggested order should not be interpreted as a mandatory immediate purchase: review stock coverage and the supplier minimum. Demand seasonality, spoilage, lead-time variability and financing are not forecast. Demand, supplier terms, spoilage, carrying costs and sales seasonality are not forecast.

Comparing two supplier lead time assumptions

The baseline and alternative calculations change supplier lead time while keeping the remaining model inputs the same. This isolates that particular assumption rather than comparing two completely different plans. Read both detailed outcomes and the B-minus-A difference in the headline’s units. A larger number is not automatically better: a larger cost and a larger savings balance have opposite interpretations.

Reproduce this tool’s example

These fixed example inputs are independent of edits you make above. Enter them in this tool to reproduce the result, then replace them with your own assumptions.

Current inventory units
600 units
Average units sold per week
90 units/week
Supplier lead time
4 weeks
Safety-stock weeks
2 weeks
Wholesale cost per unit
18 $
Selling price per unit
45 $
Supplier minimum order quantity
100 units
Alternative supplier lead time
5 weeks

Scenario B result: 100 units

Scenario A: 100 units. Suggested reorder quantity.

  • Scenario A main result: 100 units
  • Scenario B main result: 100 units
  • Numeric difference (B − A), in result units: 0

Frequently asked questions

Does an order quantity prove I need to buy today?
No. Compare current stock with the reorder threshold and actual lead time before placing an order.
Which inputs should I check before using this inventory and unit economics estimate?
Check current inventory units, average units sold per week, supplier lead time, safety-stock weeks, wholesale cost per unit, selling price per unit, supplier minimum order quantity. Match each field’s unit and time period, then compare the detailed rows rather than treating the headline alone as the complete answer.
Can I also change other assumptions in the alternative?
This one-factor comparison deliberately holds them fixed. Use the two-scenario version when rates, costs, timing or several household inputs all differ.

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