Reorder Point Calculator
Optimize inventory management with precise reorder point calculations for efficient stock control
Configure Inventory Parameters
How long your typical stock lasts to satisfy normal customer demand
Extra inventory buffer for unexpected demand or supply delays
Time between placing an order and receiving the products
Average number of units sold within the specified time period
Reorder Point Analysis
Example Calculation
Beer Shop Inventory Example
Product: Bottles of beer
Basic Stock: 10 days (normal inventory level)
Safety Stock: 2 days (emergency buffer)
Lead Time: 1 day (supplier delivery time)
Unit Sales: 10 bottles per day
Calculation
ROP = (Safety Stock + Basic Stock + Lead Time) × Unit Sales
ROP = (2 + 10 + 1) × 10
ROP = 13 × 10 = 130 bottles
Result: Reorder when you have 130 beers left in inventory
Key Inventory Concepts
Basic Stock 📦
Minimum inventory needed to meet normal customer demand without stockouts.
Safety Stock 🛡️
Extra inventory buffer to handle demand spikes or supply delays.
Lead Time ⏰
Time between placing an order and receiving the goods from supplier.
Reorder Point 🎯
Inventory level that triggers a new order to prevent stockouts.
Inventory Best Practices
Review reorder points regularly based on demand changes
Monitor supplier lead times and adjust accordingly
Balance carrying costs with stockout risks
Use demand forecasting for seasonal variations
Consider ABC analysis for different product priorities
Inventory Turnover Guide
Note: Optimal turnover varies by industry and product type. Fast-moving consumer goods typically have higher turnover rates.
Understanding Reorder Point Calculations
Why Reorder Points Matter
Reorder points help you maintain optimal inventory levels by determining exactly when to place new orders. This prevents both stockouts (lost sales) and overstocking (tied-up capital).
Key Benefits
- •Prevent stockouts and lost sales
- •Minimize carrying costs and waste
- •Improve cash flow management
- •Enhance customer satisfaction
Formula Components
Basic Stock
The minimum inventory needed to meet normal demand during the reorder cycle.
Safety Stock
Buffer inventory to handle demand variability and supply uncertainties.
Lead Time
Time required for order processing and delivery from suppliers.
Unit Sales Rate
Average number of units sold per time period (converted to daily rate).