Reorder Point Calculator
The reorder point (ROP) is the inventory level at which a new order should be placed to replenish stock before it runs out. This calculator helps you determine the optimal reorder point considering average demand, lead time, and safety stock requirements.
Input Parameters
Results
Enter values and click calculate to see results
Formula
Reorder Point = (Average Daily Demand × Lead Time) + Safety StockThe reorder point consists of two components: the expected demand during the lead time period, and a safety stock buffer to protect against variability.
Variable Definitions
Average Daily Demand
The average number of units sold or consumed per day based on historical data.
Lead Time
The number of days from placing an order to receiving it, including processing, manufacturing, and shipping time.
Safety Stock
Extra inventory held to protect against demand variability and supply delays.
Reorder Point
The inventory level that triggers a new purchase order.
Example Calculation
Scenario: A distributor has the following parameters: - Average daily demand: 50 units - Lead time: 10 days - Safety stock: 75 units (from safety stock calculation) Calculation: 1. Demand during lead time = 50 × 10 = 500 units 2. Reorder Point = 500 + 75 = 575 units The distributor should place a new order when inventory reaches 575 units.
How to Interpret Your Result
Your reorder point represents the inventory trigger level. Consider these factors: • Monitor inventory levels regularly - daily for fast-moving items, weekly for slower movers. • Set up automated alerts in your inventory system when levels approach the reorder point. • Review and adjust the reorder point seasonally if demand patterns change. • For items with long lead times, consider placing orders before reaching the reorder point. • Track actual stockouts to validate your reorder point is appropriate.