Find the stock level that triggers a new purchase order.
The reorder point is the inventory level at which a new order should fire so stock arrived just as the existing buffer runs out. Restocking on intuition either runs out of hot items or buries cash in slow ones, while a reorder point makes the trigger routine and defensible.
Reorder Point
Reorder point = daily demand x lead time + safety stock
Reorder point = daily demand x lead time + safety stock The reorder point is the inventory level at which a new order should fire so stock arrived just as the existing buffer runs out.
Restocking on intuition either runs out of hot items or buries cash in slow ones, while a reorder point makes the trigger routine and defensible.
This calculator takes 3 inputs: Daily demand, Lead time in days, Safety stock. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.