Count what you can still sell, not what is on the shelf
Compare against stock that is genuinely free: in the building, plus already ordered, minus what is promised to customers. Looking only at the shelf is how the same item gets ordered twice.
All calculators
Reorder point calculator
The reorder point is the stock level where you have to place the next order. Drop below it and you will run out before the supplier arrives. Fill in what you sell a day, how long the supplier takes and what buffer you keep, and you get the number to reorder at, plus how many days you have left.
Your figures
How many of this product go out on a normal working day. Count working days only if you do not ship at weekends.
Days from placing the order to the goods being pickable on the shelf, unloading and checking included.
How often you look at this product and can place an order. Enter 0 if you can order any day, 7 if you do your purchasing once a week.
The buffer you keep for busy weeks and late deliveries. No figure yet? Use the safety stock calculator first.
What you can actually still sell: what is in the building plus what is already on its way, minus what is promised to open customer orders.
Reorder point
2,080
Reorder point
Units. When stock drops to this number, order today.
- Demand during lead time
- 1,680
- Safety stock included
- 400
- Days until you must order
- 3.5
Units you sell while waiting for the supplier.
The buffer part of the number above.
How long you can wait, at today's stock and today's sales rate.
A one-page summary with your figures, the method and what the answer means.
A reorder point only works if the stock figure is right
Order too late and you sell air; too early and you tie up cash. Both come from a stock count that is a day or two behind reality.
See how live stock counts workHow this works, in plain English
In plain terms: while you wait for the supplier you keep selling, so you need enough on the shelf to cover the whole wait, plus your buffer for surprises. If you only place orders on set days, add the wait for the next ordering day too. The sum: daily sales x (supplier days + days between order moments) + safety stock.
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Two things worth knowing
Ordering once a week costs you stock
Every day you wait for the next ordering moment is another day of sales you have to keep on the shelf. Purchasing twice a week instead of once often frees up more cash than pushing the supplier for a shorter lead time.
Questions people ask
Reorder point or min-max?
The reorder point is the min. The max is usually the reorder point plus your order quantity, for example the EOQ or a supplier's minimum order.
Should the reorder point change over the year?
Yes, whenever demand or lead time shifts. Seasonal products need the reorder point recalculated ahead of the season, not during it.
Other calculators
Pallet and loading metre calculator
Loading metres, floor area, volume and trailers needed, from your own pallet sizes and stacking height.
Volumetric weight calculatorDimensional weight, real weight and the chargeable weight your carrier actually bills.
Warehouse space calculatorSquare metres for a given number of pallet positions, including aisles and support space.
These sums get easier when the data is already right
Loading metres, stock levels and order points are only as good as the stock data behind them. That is what a warehouse management system keeps accurate, every movement, without anyone maintaining a spreadsheet.