Reorder Point Calculator
Work out the stock level at which to reorder so replenishment arrives before stock runs out.
About Reorder Point Calculator
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.
Formula
Reorder Point
Reorder point = average daily demand × lead time + safety stock
- lead time demand
- Units consumed while waiting for the replenishment order
Worked example
With the default values below, Reorder Point Calculator returns Reorder Point of 1,940. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Average daily demandminimum 0 units
- 120 units
- Supplier lead timeminimum 0 days
- 14 days
- Safety stock heldminimum 0 units
- 260 units
- Current stock on handminimum 0 units
- 2,400 units
Results
- Reorder Point
- 1,940 units
- Demand During Lead Time
- 1,680 units
- Days Until You Should Reorder
- 3.8 days
- Stock Above the Reorder Point
- 460 units
- Verdict
- Stock is comfortably above the reorder point
Step by step
- 1Values used
- 2Reorder Point
- 3Reorder Point= 1,940 units
- 4Demand During Lead Time= 1,680 units
- 5Days Until You Should Reorder= 3.8 days
- 6Stock Above the Reorder Point= 460 units
- 7Verdict= Stock is comfortably above the reorder point
Assumptions and limits
- The result is derived only from the 4 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 1 decimal place, 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 = 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.
Why does Reorder Point matter?
Reorder points set without lead-time demand cause stockouts on exactly the fast-moving lines where availability matters most.
What values do I need to enter?
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.