A reorder point is the stock level at which you place the next order. It is average daily sales multiplied by lead time in days, plus safety stock. Enter your own three numbers below to get yours. The result is a level, not a quantity: it tells you when to order, not how much.
Work out your reorder point
Nothing is sent anywhere. The calculation happens in this page.
Reorder point = (average daily sales × lead time in days) + safety stock
Reading the result
The number is a trigger level. When sellable stock reaches it, you order. It does not tell you how many to order, which is a separate decision driven by minimum order quantity, carrying cost and how much cash you want tied up.
If the result is higher than you have ever held, that is information rather than an error. It usually means your lead time is longer than your stock policy assumes, and that you have been relying on luck rather than cover.
Recalculate when lead time changes or sales shift materially. A reorder point set in a quiet month and left alone through a busy one is how stores run out of their best sellers.
When the number looks wrong
Three things make the result look implausible, and only one of them is a problem with the calculator.
- It is much higher than your usual order size. Expected, and not a mistake. This is a level you hold, not a quantity you buy.
- It is higher than you can afford to hold. The honest answer is shorter lead times or more frequent smaller orders, not a lower reorder point. Lowering the trigger does not make the stock arrive sooner.
- It is near zero. Check the lead time input. People often enter the supplier's quoted lead time rather than the measured one, and the quoted number excludes your own receiving time.
Where the inputs come from
- Average daily sales: total units sold over a representative period, divided by the days in it. Avoid a period containing a sale or a stockout, because both distort it in opposite directions.
- Lead time: measured, not quoted. From the day you place the order to the day the stock is actually sellable, including receiving and putaway.
- Safety stock: from the safety stock calculator, or zero if you do not hold a buffer. Entering zero gives you a reorder point with no tolerance for a late delivery.
The derivation and a worked example are on the reorder point definition.
Common questions
What is a good reorder point?
There is no universal number, because it is entirely determined by your lead time and sales rate. A product selling 4 a day with a 21-day lead time needs a far higher trigger than one selling 4 a day with a 3-day lead time.
Should I include safety stock in the reorder point?
Yes, if you hold any. Without it the reorder point assumes every delivery arrives exactly on time and demand never spikes, which makes a stockout the expected outcome rather than the exception.
How often should I recalculate?
When lead time changes, or when sales shift materially. Quarterly is a reasonable default for stable lines, and more often for anything seasonal.
Does this work for products with variants?
Calculate per variant rather than per product, if variants are stocked separately. A size that sells three times as fast as another has a different reorder point, and averaging across the product hides that.