ROP/ROQ optimization calculator
This tool allows you to evaluate the economically optimal reorder point (ROP) and reorder quantity (ROQ) based on your own assumptions.
It calculates the combination that minimizes total cost or maximizes profit under given demand, lead time, and cost conditions.
Scope
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One SKU-location pair at a time
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Designed for illustrative and analytical use
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Best used on desktop
If you require large-scale calculations across assortments, please contact us.
Enter your parameters and run the calculation to evaluate optimal and custom replenishment strategies.
Parameters
Product and financial parameters
Purchase price
Unit cost including all pre-ownership expenses (delivery, customs, inspections).
Supplier payment terms
Days between delivery and payment. Default: 30 days.
Selling price
Average realized sales price per unit.
Customer payment terms
Payment delay from customers. Default: 0 days.
Cost of capital
Average cost of financing inventory.
Demand and supply parameters
Delivery lead time
Time from order placement to availability for sale.
Actual demand
Average daily sales based on periods without stock-outs.
Demand distribution
Breakdown of transaction sizes (e.g. single units vs bulk purchases).
Custom comparison
Compare optimized results with manually defined reorder point and quantity.
Differences in performance are highlighted:
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worse than optimal → red
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better than baseline → orange
Oututs and interpretation
Calculation - Calc
Runs optimization and produces optimal ROP, ROQ, and KPIs.
Cost surface
Displays total cost or profit across ROP/ROQ combinations.
The optimal point is highlighted.
Logistics curve
Shows inventory behavior over multiple replenishment cycles.
Results table
Two scenarios:
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Optimal — system-generated
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Custom — user-defined
KPIs explained
Inventory and service
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Service level
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Inventory (days)
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Average stock level
Costs
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Total cost
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Holding cost
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Stock-out cost
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Replenishment cost
Financial outcome
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Profit per day
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Inventory value
Decision parameters
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Reorder point (ROP)
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Reorder quantity (ROQ)
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Reorder cycle
Make replenishment decisions economically transparent
Understand how optimal ROP and ROQ are formed —
and what drives the result.