Reorder Point Calculator

Use this calculator to estimate reorder point.

What this calculator does

The reorder point calculator helps determine when you should reorder stock.

It is useful for:

• inventory planning
• stock control
• purchasing decisions
• supply chain management

Formula

Reorder Point = Average Daily Usage × Lead Time Days

Where:

• Average Daily Usage = average units used or sold per day
• Lead Time Days = average supplier lead time
• Reorder Point = stock level at which a reorder should be placed

Example calculation

If:

• Average daily usage = 20
• Lead time days = 12

Then:

• Reorder point = 20 × 12
• Reorder point = 240

What is reorder point?

Reorder point is the inventory level that signals it is time to place a new order.

Why reorder point matters

This calculation helps businesses:

• avoid stockouts
• improve purchasing timing
• keep inventory flowing
• reduce disruption risk

When to use this calculator

Use this calculator when you want to:

• manage inventory levels
• plan reorders
• reduce stock risk
• support procurement decisions

Common mistakes

Common mistakes include:

• using unrealistic usage averages
• underestimating lead times
• not updating for seasonal demand
• ignoring safety stock

Reorder point vs safety stock

These are closely related.

• Reorder point tells you when to reorder
• Safety stock is extra inventory kept as a buffer

Related calculations

You may also want to use:

• Safety Stock Calculator
• Inventory Turnover Calculator
• Cost Per Unit Calculator

FAQs

What does this calculator do?

It helps you calculate reorder point.

Why is reorder point important?

It helps prevent stockouts by showing when to place a new order.

Does this include safety stock?

Not in this version. Safety stock should be added separately if needed.