Business

Reorder Point Calculator

Estimate the inventory level that should trigger a new purchase order based on demand, lead time, and safety stock.

Last reviewed: April 30, 2026Free toolMethodology

Reorder Point Calculator

These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

Reorder point planning reduces stockouts without forcing teams to overbuy. It is a core control for operators who want steadier replenishment decisions.

When to use

  • Setting default reorder thresholds in an inventory system
  • Reviewing supplier lead-time changes
  • Improving service levels during seasonal demand swings

Inputs & Outputs

Inputs

  • Average daily demand is the typical number of units sold or used per day.
  • Lead time is the number of days between placing an order and receiving it.
  • Safety stock is the extra unit buffer you want on hand beyond expected demand during lead time.

Outputs

  • Reorder point is the stock level at which a new purchase order should be placed.
  • Lead-time demand shows the expected consumption before replenishment arrives.

Reorder point method

Multiply average daily demand by lead time to estimate expected consumption during replenishment, then add safety stock to create a buffer.

Reorder point = (average daily demand x lead time) + safety stock

Worked example

1

Core SKU planning

A SKU sells 18 units per day, supplier lead time is 14 days, and the team keeps 90 units as safety stock.

Inputs

  • Average daily demand: 18
  • Lead time: 14
  • Safety stock: 90

Steps

  • Lead-time demand = 18 x 14 = 252
  • Reorder point = 252 + 90 = 342

Result

  • Place a new order when on-hand inventory drops to about 342 units.

Edge cases & caveats

  • Average demand can understate risk during promotions or seasonal peaks.
  • Use actual supplier lead time, not the quoted ideal lead time, when service levels matter.

Frequently Asked Questions

How is reorder point different from EOQ?

Reorder point tells you when to place an order. EOQ helps estimate how much to order each time.

Should safety stock always be included?

Usually yes, unless demand and lead time are exceptionally stable and stockout risk is low.

Keep going

Related Tools

business

Safety Stock Calculator

Estimate a buffer inventory level using average and maximum demand alongside average and maximum lead time.

Open
business

Inventory Turnover Calculator

Measure how often inventory is sold and replenished over a period using cost of goods sold and average inventory.

Open
business

Economic Order Quantity Calculator

Estimate the order quantity that balances ordering costs against annual holding costs.

Open