Inventory math

Reorder Point Calculator

The stock level that says "order now" — early enough that the new shipment lands before the shelf goes empty.

Reorder point = daily sales × lead time in days + safety stock. While you wait for a supplier, you keep selling — the reorder point is the stock level that covers those in-transit sales plus a buffer. Selling 20 units a day with a 14-day lead time and 60 units of safety stock, you reorder at 20 × 14 + 60 = 340 units: 280 to cover the wait, 60 in case sales spike or the shipment slips. Enter your run rate, lead time, and buffer to get the trigger level for each SKU.

Reorder Point Calculator — your numbers

Reorder point

340

Sales during lead time

280

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

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Worked examples

Two-week overseas lead time

Average daily sales 20
Supplier lead time 14
Safety stock 60
Reorder point 340
Sales during lead time 280

Reorder at 340 units — 280 cover the wait, 60 absorb surprises.

Fast domestic supplier

Average daily sales 20
Supplier lead time 4
Safety stock 25
Reorder point 105
Sales during lead time 80

Short lead times slash the trigger level and the cash parked in stock.

Frequently asked questions

What should lead time include?

The full clock from placing the order to units being sellable: supplier production or picking, transit, customs if importing, receiving, and putaway at your warehouse or 3PL. Merchants who count only the shipping days consistently reorder too late. Measure a few recent orders end to end and use the realistic total, not the supplier’s quoted number.

What happens if I reorder below the reorder point?

You stock out during the lead time. Every day of delay past the trigger costs you a day of sales at the end of the cycle — and stockouts cost more than the lost orders, because marketplace rankings and ad campaigns lose momentum that takes weeks to rebuild. If stock is already below the point, order immediately and consider expedited freight.

How often should I recalculate reorder points?

Whenever either input moves: review daily sales monthly (or weekly in Q4), and update lead time after any supplier change or shipping disruption. A reorder point set on January’s sales rate will trigger far too late in November. Many merchants keep a simple spreadsheet per SKU and refresh it on the first of each month.

Does this work with several suppliers for the same product?

Compute a reorder point per supplier lane using that lane’s lead time, and trigger on the one you actually plan to order from. A common pattern is a cheap slow lane (sea freight, high reorder point) for baseline volume plus a fast expensive lane (air, low reorder point) held in reserve for emergencies when the slow lane slips.

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