Work & small business · 139

Inventory reorder point

At what stock level should a new order be placed?

Your numbers

units
days
days

Quick answer

What does the Inventory reorder point calculate?

At what stock level should a new order be placed? This calculator uses average units sold per day, supplier lead time, and safety-stock days to estimate stock level that triggers an order immediately in your browser.

With the values currently entered, the result is 306 unitsreorder point. It also shows expected lead-time demand, and safety stock.

How to use the Inventory reorder point

  1. Replace the example values with your own numbers.
  2. Review the result and supporting figures as they update automatically.
  3. Check the formula and assumptions before using the estimate for a decision.

Inputs used

  • Average units sold per day — entered in units
  • Supplier lead time — entered in days
  • Safety-stock days — entered in days

Inventory reorder point formula

Daily sales × (supplier lead time + safety-stock days)

Assumptions

  • Average demand remains stable.
  • Lead time is measured in the same selling days as demand.

Practical guide

Inventory reorder point example and edge cases

At what stock level should a new order be placed? Let's use a concrete example, then look at the assumptions that can move the answer.

Example: A practical inventory reorder point scenario

For this example, use average units sold per day of 18 units, supplier lead time of 12 days, and safety-stock days of 5 days. These are starting values, so replace them with numbers that match your situation.

Average units sold per day
18 units
Supplier lead time
12 days
Safety-stock days
5 days

Calculated result306 unitsreorder point

Start with reorder point. Then check expected lead-time demand, and safety stock to understand what sits behind the main result.

Example results use the default display profile. The calculator above follows your selected country and units.

How to read the result

  • Read the main result first. The supporting figures for expected lead-time demand, and safety stock explain how the estimate is built.
  • The method is Daily sales × (supplier lead time + safety-stock days). Keep the units consistent and use values from the same time period.

Edge cases worth checking

When average units sold per day is unusual

Average demand remains stable. Double-check this input before relying on the result.

When safety-stock days is uncertain

Lead time is measured in the same selling days as demand. Run a lower and higher value to see a useful range.

What changes the result most

Average units sold per day

Use the count you expect in real life. Round up when a partial units cannot be purchased or used.

Supplier lead time

Keep supplier lead time on the same time basis as the other inputs. Monthly and annual values are easy to mix up.

Safety-stock days

Keep safety-stock days on the same time basis as the other inputs. Monthly and annual values are easy to mix up.

Try a different scenario

Small changes show whether the answer is stable or sensitive.

Average units sold per day: 10% lower

16 units

272 unitsreorder point

Average units sold per day: 10% higher

20 units

340 unitsreorder point

Supplier lead time: 10% higher

13 days

324 unitsreorder point

Common mistakes

Check average units sold per day

Average demand remains stable. Make sure this matches the number you enter.

Keep safety-stock days consistent

Lead time is measured in the same selling days as demand. Use the same units and time period throughout the calculation.

Do not rely on one inventory reorder point scenario

Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.

Use this result well

Use it for

At what stock level should a new order be placed?

Do not use it as

It does not replace a quote, contract, accountant, or local employment guidance.