HesapHanem

Reorder Point Calculator

Enter daily usage, lead time in days, and safety stock to find the reorder point.

How it is calculated

The reorder point is the stock level that must still be on the shelf when you place an order, so that what remains lasts until the delivery arrives, with a buffer on top:

demand during lead time = daily usage × lead time (days)
reorder point = demand during lead time + safety stock

Daily usage and safety stock are in the same unit (pieces, kilograms, cases), and lead time is in days, from placing the order to having the goods ready to use. Results are rounded to whole units. All three fields must be filled; if you carry no buffer, type 0 for the safety stock, since an empty field gives no result. The tool does not compute the safety stock itself: you choose it, for example from how much usage and lead time vary.

Worked example

A shop uses 42 units a day, its supplier needs 9 days to deliver, and it wants a buffer of 120 units. Demand during the lead time is 42 × 9 = 378 units. Adding the safety stock gives 378 + 120 = 498. When the stock on hand falls to 498 units, it is time to place the next order. With the same usage but a 14-day supplier, demand during lead time jumps to 588 and the reorder point to 708.

Try this example →

Common mistakes

  • Mixing time units, such as usage per week with lead time in days. Daily usage must be per day, matching the lead time in days.
  • Using the lead time quoted by the supplier and forgetting your own handling days. Count from when you order until the goods can actually be sold or used.
  • Leaving safety stock empty. The tool needs a value; type 0 if you want none, but remember that then any delay or demand spike causes a stockout.
  • Using peak daily demand for usage and then adding a big safety stock on top, which counts the same risk twice and ties up cash.
  • Confusing the reorder point with the order quantity. This number says when to order, not how much; the quantity comes from a separate rule such as EOQ.

Sources

About this calculator

The reorder point is the inventory level at which a new purchase or production order should be triggered so stock doesn’t run out before the replenishment arrives. It’s calculated as the average demand during the supplier’s lead time, plus a safety stock buffer to absorb the natural swings in daily sales or lead-time length: Reorder Point = (average daily demand × lead time in days) + safety stock.

Set the reorder point too low and a warehouse risks stockouts and lost sales while waiting for a new shipment; set it too high and cash gets tied up in excess inventory sitting on shelves. Retailers, manufacturers, and e-commerce fulfillment teams use this figure inside their inventory management systems to automate purchase-order triggers, and it works hand-in-hand with the Economic Order Quantity (EOQ) — the reorder point tells you when to order, EOQ tells you how much.

Was this helpful?

You can pick up to 3 reactions.

Comments

  • Be the first to comment.

Popular calculators

Loan Calculator

Monthly payment, total interest and full amortization schedule.

Percentage Calculator

Percent change, percent of, and ratio calculations.

Discount Calculator

Calculate final price, savings, and discount amount.

BMI Calculator

Body mass index from height and weight (metric or imperial).

Age Calculator

Compute your exact age in years, months and days from a birth date.

Compound Interest Calculator

Calculate the final amount and interest earned with compounding.

All Calculators