Calculate When Inventory Must Be Reordered

How to Use This Tool

Combine lead-time demand with an explicit safety-stock coverage window. Ordering from average demand alone creates a stockout whenever lead time or daily sales runs above the average.

Why Reorder Point needs more than a raw total

Safety days are visible and auditable, but variable-demand operations should replace them with a service-level model once enough history exists. For this page, the useful comparison is reorder point, not whichever input happens to be largest. The Reorder Point result answers the decision in the heading and should not be reused as a score for a different workflow.

The exact Reorder Point formula

Reorder point equals average daily demand × (supplier lead days + safety-stock days). The visible fields are Average units sold per day, Supplier lead time and Safety stock coverage. For Reorder Point, read each printed unit before entry and make the values describe one transaction, cohort or reporting window. If those scopes differ, the displayed reorder point may be arithmetically valid but operationally meaningless.

Interpreting reorder point

Trigger replenishment from inventory position including open purchase orders, not only the units physically on the shelf. The ten-percent comparison is deliberately narrow: it tests the influence of average units sold per day and is neither a forecast nor a confidence interval. Preserve the values used, their dates and the resulting decision so a later reviewer can reproduce why Reorder Point supported the choice.

What this Reorder Point model leaves out

Demand variability, supplier variability, seasonality, minimum order quantities and open purchase orders are excluded. That is where Reorder Point stops being trustworthy. If an excluded factor could reverse reorder point, extend the model explicitly or use the authoritative account system instead of hiding the factor inside an unexplained adjustment.

Evidence and independent verification

The reference reviewed for Reorder Point is U.S. SBA — Manage your inventory. U.S. SBA — Manage your inventory supports the named definition or rule but does not supply private values for reorder point. Before acting on the result, reconcile the worked example with the relevant dashboard, invoice, export or measurement.

Private, reproducible calculation

Reorder Point runs its arithmetic in the current browser tab and requests no login or API key. That keeps the Reorder Point inputs away from the site's calculation server, while leaving the user responsible for detecting stale data or a changed platform rule. When an assumption changes, reopen U.S. SBA — Manage your inventory and rerun the saved Reorder Point scenario.