Minimum Stock = Daily Demand Forecasting × Lead Time
Maximum Stock = Daily Demand Forecasting × (Lead Time + Period Ordered)
Inventory Carrying = Minimum Stock Inventory on Hand
Days of Inventory Hold on without Purchasing = Inventory Carrying / ( Daily Demand Forecasting)
Economic Order-Quantity (EOQ) = Demand Forecasting Inventory on Hand + Safety Stock
This model can be analyzed by inspection at level of the inventory carrying value. If the high level, then manager
reduce stock. In the order hand, if the low level, then manager has to consider for ordering (EOQ).