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Reorder point calculator

Daily usage × supplier lead time + safety stock.

When should you reorder?

Operators setting low-stock thresholds for fast-moving supplies, parts, ingredients, or ecommerce inventory.

Formula and worked example

A reorder point calculator applies the reorder point formula (average daily usage × lead time in days + safety stock) to find the on-hand level that should trigger a reorder review before you stock out. Enter your average daily usage, supplier lead time, and safety stock to get a working reorder point per SKU or location.

Forecasting seasonal demand or optimizing order quantity. This calculator answers when to reorder, not how much to buy.

A part uses 12 units per day, takes 7 days to receive, and needs 36 units of safety stock. Reorder point = 12 x 7 + 36 = 120 units.

Not sure what safety stock number to use? Work it out first with the safety stock calculator.

Want the formula, a worked example, and how to set thresholds by location? Read the reorder points explained guide.

Reorder point

120

units on hand

Usage during lead time

84

units before receipt

Status

Reorder review needed

On-hand stock is 24 units below the reorder point.

Reorder point: 120 units. Lead-time demand: 84 units. Safety stock: 36 units. On-hand stock: 96 units.

Review this with Order3

Check the figures behind your threshold

Review demand and delivery times when they change. Check open purchase orders before ordering more stock.

Step 01

Work through one SKU

Suppose you use 12 brackets per day, replenishment takes 7 days, and you keep 36 units of safety stock. Reorder point = (12 × 7) + 36 = 120 units. The daily rate and lead time must use the same time unit. This is an illustrative threshold, not a recommendation to buy 120 brackets.

Step 02

Check the PO already in flight

The calculator compares the shelf count with the threshold. It does not read open POs or commitments. Before buying, check inventory position: on hand + confirmed incoming stock − committed demand. With 96 on hand, 72 incoming and 12 committed, the position is 156 units. That is above the 120-unit threshold, but only rely on the incoming PO if it will arrive before you run out. A late delivery needs a separate decision.

Step 03

Use measured usage, not instinct

Pull usage from the last 60 to 90 days when possible. A one-week snapshot is noisy. A full year can hide recent demand changes. For seasonal businesses, calculate a separate reorder point for the busy season instead of averaging the year into one misleading number.

Step 04

Measure lead time from decision to shelf

Lead time starts when your team decides to reorder and ends when the stock is usable. If a PO waits two days for approval, those two days count. If receiving takes a day before items are available, that day counts too.

Step 05

Set the rule per location

A busy store, a central warehouse, and a technician truck should not share one threshold. Each location has its own usage rate and effective lead time. Calculate the reorder point where the item actually runs out. The reorder points guide covers why thresholds should vary by location and how to set them.

Order3 fit

Track the stock behind this calculation

Add your items to Order3 and track quantities by location alongside your purchase orders.

Frequently asked questions

What is the reorder point formula?

Reorder point = average daily usage x lead time in days + safety stock. The result is the stock level that should trigger a reorder review before the shelf runs empty.

Is reorder point the same as reorder quantity?

No. Reorder point tells you when to reorder. Reorder quantity tells you how many units to buy. Quantity depends on case packs, supplier minimums, freight breaks, budget, and storage capacity.

Does this calculator include open purchase orders?

No. It calculates a threshold and compares it with the on-hand count you enter. Check confirmed incoming stock, committed demand and delivery dates before creating a new PO. A low shelf count can coexist with enough stock already on order.

Should every SKU have a reorder point?

No. Start with the SKUs where stockouts hurt: high-velocity items, high-margin items, job-critical parts, clinical supplies, or items with long lead times. Add the long tail after the core list is stable.

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