Glossary
What is reorder quantity?
Reorder quantity is the number of units to order when stock hits the reorder point, sized to cover demand until well past the next delivery.
Definition
Formula
Reorder Quantity = Average Usage per Order Cycle, adjusted for case packs, minimums, and price breaks (or EOQ where inputs are known)
Example
A fastener SKU uses about 200 units a month and the shop wants to order every two months. Baseline quantity is 400, rounded up to 500 to match the supplier's 100-unit cartons and clear the $400 free-freight threshold.
By Cameron Priest · Co-founder, Order3
Cameron co-founded TradeGecko, the inventory platform acquired by Intuit. He has spent more than a decade building software for the people who run physical stock.
Updated 2026-06-16
Where this lives in Order3