Calculate the inventory level at which you should place a new order. The reorder point accounts for lead time and safety stock to prevent stockouts.
Enter your values below to calculate when to reorder.
Days from order to delivery
Average units sold per day
Buffer for demand variability
Demand during lead time
140 units
7 days × 20 units/day
Safety stock
50 units
Buffer inventory
Reorder Point
190 units
Order when stock reaches this level
Interpretation: When your inventory drops to 190 units, place a new order. This gives you enough stock to cover 7 days of lead time (140 units) plus 50 units of safety stock.
Reorder Point = (Lead Time × Daily Demand) + Safety Stock
Days between placing an order and receiving it. Include shipping, processing, and any buffer.
Average units sold or used per day. Calculate from historical sales data.
Extra inventory to cover demand variability and supply delays. Higher for critical items.
| Lead time | 7 days |
| Daily demand | 20 units/day |
| Safety stock | 50 units |
| Reorder point | (7 × 20) + 50 = 190 units |
When inventory drops to 190 units, place a new order. This gives you enough stock to cover the 7-day lead time (140 units) plus safety stock (50 units) for unexpected demand.
Base daily demand on real sales history, not estimates. Account for seasonality if demand varies.
Suppliers are sometimes late. Use worst-case lead time for critical items, average for others.
High-margin or critical items deserve more safety stock. Low-value items can run leaner.
Demand and lead times change. Review reorder points quarterly or when patterns shift.
Set reorder points per SKU in StockZip and get automatic alerts when stock drops below the threshold. No more spreadsheets, no more manual checks.