Free Reorder Point Calculator
What is a Reorder Point?
A reorder point is the inventory level at which you should place a new order to replenish your stock. Calculating it correctly helps prevent stockouts while minimizing excess inventory costs.
How to Use This Calculator
Simply enter your average daily sales, lead time (in days), and safety stock level. Our calculator will determine the optimal reorder point for your inventory item.
Reorder Point Calculator
Formula:
(Daily Sales × Lead Time) + Safety Stock
Your Reorder Point:
When your inventory reaches this level, it's time to place a new order.
Understanding the Factors
- Average Daily Sales: How many units of this product you typically sell in a day.
- Lead Time: How many days it takes from ordering until the inventory arrives.
- Safety Stock: Extra inventory kept as a buffer against unexpected demand or supply delays.
Benefits of Setting Proper Reorder Points
Optimizing your reorder points can help:
- Prevent costly stockouts and lost sales
- Reduce excess inventory carrying costs
- Improve cash flow by optimizing inventory investment
- Increase customer satisfaction with reliable product availability
Pro Tip
For seasonal products, consider calculating separate reorder points for different seasons to account for fluctuations in demand.