Reorder Point Calculator
Know exactly when to reorder, with enough safety stock to cover busy days and slow suppliers.
- Safety stock (units)
- 540
- Lead time demand (units)
- 360
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How to use the reorder point calculator
- Enter your average daily sales and your highest daily sales for the product.
- Enter your supplier's usual lead time and the longest it has taken, including shipping.
- Reorder when stock on hand falls to the reorder point.
Reorder point formulas
This is the simple max-minus-average method, which suits most small businesses. Results are rounded up to whole units.
Example
A product sells 12 units a day on average and up to 20 on busy days. The supplier usually takes 30 days but has taken 45. Lead time demand is 360 units, safety stock is 900 − 360 = 540 units, so reorder when stock falls to 900 units.
Why reorder points matter
Running out loses sales and search ranking on marketplaces, while ordering too early ties up cash. A reorder point based on real sales and lead times balances the two.
Keep your inputs up to date
Recalculate when sales change with the season, before big promotions, and whenever a supplier's lead time changes. Many sellers review reorder points monthly.
Frequently asked questions
How do I calculate a reorder point?
Multiply average daily sales by average lead time, then add safety stock.
What is safety stock?
Extra stock kept to cover sales spikes and supplier delays.
What lead time should I use?
The total time from placing an order until stock is ready to sell, including production, shipping and receiving.
How much should I order when I hit the reorder point?
Enough to last until the next order arrives, balanced against MOQ and storage costs.
Does this work for marketplaces like Amazon?
Yes. Include inbound shipping and check-in time at the warehouse in your lead time.
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