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Reorder point is the inventory number that tells you exactly when to place a new purchase order, not by gut feel but by the math of how fast you sell and how long a replacement takes to arrive. Get it wrong and you either stock out and lose sales, or you order too early and tie up cash in inventory sitting on a shelf. This calculator takes your daily usage, lead time and safety stock and returns the exact trigger point.
Multiply average daily usage by lead time in days, then add safety stock. If you sell 120 units a day, your supplier takes 9 days to deliver a new order, and you hold 250 units of safety stock, the math is 120 times 9, which is 1,080 units used during the wait, plus 250 units of buffer, for a reorder point of 1,330 units. Once your on hand inventory drops to that level, it is time to order, not before and not after.
Safety stock exists because neither your sales pace nor your supplier's delivery time is perfectly predictable. A supplier running a few days late, a sudden spike in demand, or a shipping delay can all eat into the buffer you would otherwise have. Without safety stock built into the formula, the reorder point only covers the average case, and any deviation from average turns into a stockout. Adding it shifts the trigger point earlier by exactly enough to absorb reasonable surprises.
Reordering based purely on how fast you sell, without factoring in how long a new order takes to arrive, is one of the most common inventory mistakes. A product that sells fast but has a long lead time needs to be reordered much earlier than the daily sales number alone would suggest, since a large amount of stock will move during the wait. Lead time is what converts a simple sales rate into an actual, usable trigger point for action.
A well tuned reorder point keeps products in stock for the customers organic and AI search are already sending you. Request a free SEO audit and we will show you where more of that demand is available to capture.
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