Definition
Reorder point
The reorder point is the stock level at which you should place the next order so the new stock arrives before you run out, given how fast the item sells and how long delivery takes.
The classic formula is daily sales × lead time in days, plus a safety stock buffer for weeks that sell faster than average or deliveries that slip. Sell three a day, wait ten days for delivery, keep a five-day buffer: reorder at 45.
Reorder points drift as sales change, which is why fixed thresholds go stale. Expressing the threshold in days of cover instead of units keeps it honest.
In Inventory Now
Set a low-stock threshold in units or days and get a push notification before you run out.
Reorder point calculatorRelated terms
