How the Reorder Point Calculator works
Order when stock hits the reorder point and the new units land just as safety stock is being used. Wait longer and you stock out; order earlier and cash sits idle.
Formula
- Reorder point = Average daily sales × Total lead time + Safety stock
- Safety stock = Average daily sales × Safety days
Example
Reorder point 300: with 300 units on hand, order today.
Units in stock: 300Average daily sales: 5Supplier production (days): 30Shipping + receiving (days): 20Safety days: 10
Frequently asked questions
Does lead time include shipping to Amazon?
Yes, and receiving at the fulfillment centre, which can add a week.