Find the stock level that should trigger a new order from daily demand, supplier lead time and safety stock.
Result
How to use this tool
Use recent sales per day, not a yearly average, if demand varies by season.
Count the days from placing the order to stock being available to sell.
Use your buffer quantity, or 0 if you hold no buffer.
Place the order as soon as stock reaches this level.
Formula & worked example
Selling 20 units a day with a 7-day lead time and 50 units of safety stock gives a reorder point of 190 units.
Limitations — read this before you rely on it
Assumes steady average demand and a fixed lead time. It does not model seasonality, promotions, or supplier reliability.
Frequently asked questions
The stock level at which a new order should be placed so fresh stock arrives before you run out.
A buffer against higher-than-average demand or a longer-than-expected lead time.
From demand variability and the service level you want; higher service levels need more safety stock.
No. The reorder point says when to order; the order quantity is a separate decision, often set by EOQ.
Recalculate with the current average daily demand, since a yearly average will mislead in peak and quiet periods.