Work out the stock level at which to reorder so replenishment arrives before stock runs out.
The reorder point must cover everything sold during the lead time plus a buffer for variability. Ordering when stock hits this level means replenishment arrives just as the safety stock would otherwise be consumed. Reorder points set without lead-time demand cause stockouts on exactly the fast-moving lines where availability matters most.
Reorder Point
Reorder point = average daily demand × lead time + safety stock
Reorder point = average daily demand × lead time + safety stock The reorder point must cover everything sold during the lead time plus a buffer for variability. Ordering when stock hits this level means replenishment arrives just as the safety stock would otherwise be consumed.
Reorder points set without lead-time demand cause stockouts on exactly the fast-moving lines where availability matters most.
This calculator takes 4 inputs: Average daily demand, Supplier lead time, Safety stock held, Current stock on hand. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.