inventory
Reorder Point Calculator
The Reorder Point Calculator determines the inventory level at which you should place a new order to avoid stockouts. It accounts for average daily demand, lead time, and safety stock to ensure you never run out of critical items.
Reorder Point Calculator
Know when to reorder before running out of stock
Examples
Electronics Distributor
Average daily demand: 10 units. Lead time: 5 days. Safety stock: 25 units. ROP = 75 units.
Frequently Asked Questions
What is a reorder point?
A reorder point (ROP) is the inventory level that triggers a new purchase order. When stock falls to this level, it's time to reorder. ROP = (Average Daily Demand × Lead Time) + Safety Stock.
How do you set a reorder point?
Calculate your average daily demand, determine your supplier lead time, add safety stock to cover demand variability, then sum them: ROP = (Daily Demand × Lead Time Days) + Safety Stock.