Reorder Point Calculator

Your details

Simple uses max/average demand and lead time. Statistical uses standard deviation of daily demand and a service-level Z-score for a more precise buffer.
How many units you sell or consume on an average day.
units/day
The highest number of units sold in any single day over the period you measured.
units/day
Average number of days between placing an order and receiving the stock.
days
The longest delivery time you have experienced from this supplier.
days
Cost per unit. If provided, the calculator estimates the carrying cost of your safety stock at an annual holding rate of 25%.
USD
Annual inventory holding cost as a percentage of unit value. Industry average is 20-30%; 25% is a common default.
%
Reorder PointHigh buffer
750units

Place a new order when stock falls to this level

Safety Stock400units
Demand During Lead Time350units
Lead-time demand350
Safety stock400

Reorder when stock hits 750 units

  • Your reorder point is 750 units. Place a purchase order when your on-hand inventory drops to that level to avoid stockouts during the 7-day lead time.
  • Safety stock of 400 units protects you against demand spikes and supplier delays. This is 53% of your reorder point.
  • During a typical lead time of 7 days, you expect to sell 350 units. Your reorder point covers this demand plus your safety buffer.

Next stepThe simple method is a good starting point. Consider switching to the statistical method once you have demand history with a measurable standard deviation.

 = Powered by OnlyCalculators