Free Reorder Point Calculator
Calculate the reorder point to determine the inventory level at which a new order should be placed to avoid stockouts.
Reorder Point
330
Reorder Point vs Lead Time (days)
How to Calculate the Reorder Point
Formula
Reorder Point = (Daily Demand x Lead Time) + Safety Stock
The reorder point tells you exactly when to trigger a new purchase order. When inventory drops to this level, it is time to order. The lead time demand component covers expected usage during the wait for delivery. Safety stock provides a buffer against demand spikes or supplier delays. Setting the right reorder point prevents both stockouts and excess inventory.
Example Calculation
A product sells 40 units per day, the supplier takes 7 days to deliver, and you maintain 50 units of safety stock.
- 01Lead Time Demand = 40 x 7 = 280 units
- 02Reorder Point = 280 + 50 = 330 units
- 03Place a new order when inventory hits 330 units.
Frequently Asked Questions
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