Inventory reorder point calculator
The reorder point is the inventory level where you should buy again so you do not run out before the next delivery arrives.
Formulas
Lead-time demand
Lead-time demand = Daily demand x Lead time
Reorder point
Reorder point = Lead-time demand + Safety stock
Suggested order
Suggested order = Daily demand x Target coverage days + Safety stock - Current stock
Example
If you sell 25 units per day, your supplier takes 7 days, and you keep 50 safety units, your reorder point is 225 units. If you have 180 today, it is time to reorder.
Calculate by product
Demand changes by SKU. Calculate fast-moving, slow-moving, and seasonal products separately.
Increase safety stock or the lead time used in the calculation. That raises the reorder point.
Weekly for fast-moving products, and after promotions, seasonal shifts, or supplier changes.