Reorder Point Calculator
Find the stock level at which to reorder, from daily usage, lead time and safety stock.
- Stock used during lead time
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What is the Reorder Point Calculator?
The reorder point calculator tells you the stock level at which a new order should be placed. It adds the stock you expect to use during the supplier lead time to a safety buffer, so you rarely run out before delivery arrives.
How it works
Reorder point equals daily usage multiplied by lead time in days, plus safety stock. For example, using 40 units a day with a 7-day lead time needs 280 units to cover the wait, and a safety stock of 100 raises the reorder point to 380 units.
How to use it
- Enter the average units used or sold per day.
- Enter the supplier lead time in days.
- Enter the safety stock you want to hold.
- Read the reorder point.
Reorder Point Calculator — FAQ
What is safety stock?
Extra units held to cover higher demand or late deliveries. You decide the amount based on how variable your usage and lead time are.
How do I find daily usage?
Divide total units sold or consumed over a recent period by the number of days in it. Use a period that reflects normal demand.
When should I reorder?
Place the order when your stock on hand, including anything already on the way, falls to the reorder point.