Question 1

What is inventory turnover ratio?

Accepted Answer

Inventory turnover = cost of goods sold / average inventory value. A ratio of 12 means you sell and replace your entire inventory 12 times per year (every 30 days). Higher turnover generally means better cash flow and lower carrying costs.

Question 2

What is Economic Order Quantity (EOQ)?

Accepted Answer

EOQ is the order quantity that minimizes total inventory costs (ordering costs + holding costs). EOQ = sqrt((2 x annual demand x ordering cost) / holding cost per unit). Ordering more or less than EOQ increases total cost.

Question 3

What is freight class?

Accepted Answer

Freight class (NMFC class) is a standardized rating system for LTL shipping in the US. It runs from Class 50 (densest, cheapest) to Class 500 (lightest, most expensive). Class is determined by density, stowability, handling, and liability.

Question 4

Are these logistics tools free?

Accepted Answer

Yes - completely free, no sign-up required. Results export to CSV or PDF.

Free Logistics Tools & Calculators

Logistics calculators for operations teams

Logistics Tools - FAQ