Does operating margin fund the next inventory cycle, or do we need external capital?
Define your unit economics, inventory, demand, and manufacturer terms
$1.50 per unit
Based on current demand: 150 units/day × $10.00 × 365 days
Gross revenue before fees and costs
Total contribution cash to generate during period
Safety stock buffer for reorder planning
42 days
Balance: 50%
42 days
Balance: 30%
70 days
Balance: 50%
When must I place the next order to not stock out?
| SKU | Current Inventory | Trigger Point | Days Until Reorder | Status |
|---|---|---|---|---|
| vanilla | 2,000 units | 3,440 units | 0 days late | ORDER NOW |
| mint | 2,000 units | 2,950 units | 0 days late | ORDER NOW |
| cinnamon | 1,000 units | 3,580 units | 0 days late | ORDER NOW |
Trigger point = (daily demand × lead time days) + (daily demand × 7 buffer days)
This ensures you order with enough time for inventory to arrive before stockout.