Reorder Point Calculator
Calculate the exact inventory threshold that triggers a purchase reorder. A clear reorder level helps you avoid both running out and holding too much stock.
How it works
Reorder point = (average daily unit sales × supplier lead time in days) + safety stock. Selling 25 units daily with a 14-day delivery cycle requires 350 units to cover lead time demand. Adding 100 buffer units yields a reorder point of 450 units.
Questions
When should a replacement purchase order be placed?
Issue a new purchase order immediately when available stock on hand plus incoming orders falls to or below the calculated reorder point.
How should safety stock be chosen?
Safety stock is a buffer for supplier delays or demand spikes. Calculate it from historical demand variability and supplier delivery reliability.
What happens if lead time fluctuates?
If delivery durations vary significantly, increase safety stock or use maximum expected lead time in order planning to avoid stockouts.
Results are estimates for planning. They are not tax, legal or financial advice.
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