Reorder Point
Find the stock level that triggers a new purchase order.
About Reorder Point
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.
Formula
Reorder Point
Reorder point = daily demand x lead time + safety stock
- safety stock
- Buffer for demand and supply variability
Worked example
With the default values below, Reorder Point returns Lead Time Demand of 560. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Daily demandminimum 0
- 40
- Lead time in daysminimum 0
- 14
- Safety stockminimum 0
- 120
Results
- Lead Time Demand
- 560
- Reorder Point
- 680
Step by step
- 1Values used
- 2Reorder Point
- 3Lead Time Demand= 560
- 4Reorder Point= 680
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to whole numbers, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Reorder Point calculated?
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.
Why does Reorder Point matter?
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.
What values do I need to enter?
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.