When to use this calculator
Food and FMCG buying decisions, evaluating MOQs from new suppliers, sizing promotional bulk buys, and stress-testing how much cash gets tied up in slow-moving SKUs.
Inputs explained
Supplier MOQ is the minimum order in units. Monthly sales is your expected run-rate (use the average, not the best month). Production / expiry / arrival dates drive shelf-life math. Minimum remaining shelf life is what your buyer requires at delivery. Wastage reduces effective sell-through.
Outputs explained
Risk compares months of stock against remaining shelf life. Suggested safe order quantity is what you could realistically sell within remaining shelf life at your current rate. Cash tied up is the inventory investment you need to fund.
Worked example
MOQ 10,000 units @ $2 ($20,000 cash). You sell 1,200/month → 8.3 months of stock. Production was 3 months ago, shelf life 12 months, arrival in 1 month → 8 months remaining. Stock duration ≈ remaining shelf life: medium risk, with no buffer for slow months.
Common mistakes
- Using "best-month" sales as your run-rate.
- Ignoring production date — old stock in date still has very little life left.
- Forgetting transit time when calculating remaining shelf life.
- Accepting an MOQ for a great per-unit price, then writing off 30% of stock.
- Not including buyer minimum-shelf-life requirements (often 75% for retail).