How this calculator works
A reorder point is the stock level at which a business should start replenishment so an incoming delivery has time to arrive. The tool also estimates a target order quantity for a chosen coverage period.
What the calculation does
Multiply daily expected demand by supplier lead time plus safety days. If current available stock is at or below this threshold, it is time to order. The suggested quantity then targets your chosen post-receipt stock cover.
Important limitations
Assumes steady average sales and a deterministic lead time. Seasonality, supplier minimum order sizes, inbound inventory and demand variability may require a more advanced model.
Common questions
What counts as safety stock?
A buffer intended to absorb demand or delivery uncertainty. This simple model specifies it as extra days of average sales.
Should I include stock already on order?
No. The current stock input refers to available on-hand units. If you have firm inbound deliveries, use an inventory-position model instead.
Why can the suggested order exceed the reorder point?
The reorder point tells you when to replenish. The order quantity also aims to restore your desired forward coverage.