How to use the Reorder Point Calculator
Stockouts cost you sales, and overstocking ties up your cash flow. Finding the perfect middle ground is critical for product-based businesses. Our free calculator helps you determine exactly when to hit the "reorder" button with your supplier.
The Formula Explained
The standard reorder point formula calculates "Lead Time Demand" and adds your "Safety Stock" buffer:
Reorder Point = (Daily Sales × Lead Time) + Safety Stock
- Average Daily Sales: How many units of this SKU do you sell per day, on average?
- Supplier Lead Time: How many days does it take from the moment you place a Purchase Order until the inventory is received and ready to sell?
- Safety Stock Buffer: How many "days worth" of extra stock do you want to keep on hand just in case sales spike or your supplier is late?
Why is this important?
If you only order when you run out of stock, you will be unable to fulfill orders during your supplier's lead time. If your supplier takes 14 days to deliver, and you sell 10 units a day, you will miss out on 140 sales every time you restock. Calculating your Reorder Point (ROP) ensures continuity of sales.
Stop guessing when to reorder.
Calculating this manually for hundreds of SKUs is impossible. Stash automatically calculates your reorder points and sends you Low Stock Alerts the second an item hits its threshold.
Automate Reordering