Setu.Technology

Free Tool — Stock Reorder Point Calculator

Stock Reorder Point Calculator

Enter average daily sales, supplier lead time and safety stock to find when you should reorder.

Reorder at

130 units

Lead-time demand

100 units

Reorder before you run out, not after

A reorder point is the stock level that should trigger a new purchase order — set it too low and you risk running out before the new stock arrives; set it too high and you're tying up cash in excess inventory.

Enter your average daily sales for an item, how many days your supplier typically takes to deliver, and a safety stock buffer for demand spikes or delivery delays, and this calculator gives you the exact unit count that should trigger your next order.

Reorder point and lead-time demand formula

Lead-time demand = Average daily sales × Supplier lead time in days. Reorder point = Lead-time demand + Safety stock. Both results are shown rounded to whole units. When stock on hand falls to the reorder point, place the next order. See lead time and safety stock for the other terms.

How to use the Stock Reorder Point Calculator

  1. 1Pick one item. Reorder points are set per item (SKU), not for the whole shop.
  2. 2Enter average daily sales in units: units sold over the last few weeks divided by the number of days.
  3. 3Enter supplier lead time in days, from the day you place the order to the day the stock is ready to sell.
  4. 4Enter safety stock in units, the buffer you want left when the new stock arrives.
  5. 5Read Reorder at for the trigger level, and Lead-time demand for how much you expect to sell while you wait.
  6. 6Write the reorder point in your stock register or on the shelf tag, and order as soon as stock falls to it.

Worked example: reorder point for cooking oil pouches

A kirana store sells about 18 one-litre sunflower oil pouches a day, and its distributor takes 4 days to deliver. Lead-time demand is 18 × 4 = 72 pouches. The owner keeps two days of sales as safety stock, 18 × 2 = 36 pouches, so the reorder point is 72 + 36 = 108. When the count drops to 108 pouches, it is time to call the distributor.

Before Diwali, sales rise to 25 pouches a day and deliveries take 6 days. Lead-time demand becomes 25 × 6 = 150, and two days of safety stock is now 50, so the reorder point jumps to 200. If the owner kept the old figure of 108 that season, the shelf would run empty nearly two days before the new stock arrived.

Tips for reorder points that hold up

  • Base average daily sales on the last four to eight weeks, and leave out one-off bulk orders that will not repeat.
  • Count only sellable stock against the reorder point. Exclude damaged, expired or already-reserved units.
  • Work in the unit you order in. If the supplier sells by the carton, convert the reorder point from pieces to cartons.
  • If you count stock only once a week, add up to a week of sales to the reorder point so an item cannot slip below it unnoticed between counts.
  • Review reorder points every month, and straight away when you switch supplier or delivery days change.
  • The reorder point tells you when to order, not how much. How much to order depends on the supplier's minimum order, your shelf space and the cash you have.

Related stock and purchasing tools

Stock reorder point calculator FAQs

Reorder Point = (Average Daily Sales × Supplier Lead Time in Days) + Safety Stock. It's the stock level at which a new order should be placed so the replacement stock arrives before you run out.

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