Reorder Point Calculator

Our reorder point calculator helps you determine the exact time to place a new order before you run out of inventory. By using this inventory reorder point calculator, businesses can maintain smooth operations, minimize stockouts, and improve customer satisfaction.

Average Demand (per day)

Lead Time (days)

Safety Stock (units)

How to Calculate Reorder Point?

The formula to calculate the reorder point is:

Reorder Point = (Average Daily Demand × Lead Time) + Safety Stock

Average Demand: The number of units sold per day.
Lead Time: How many days does it take to receive new stock after placing an order?
Safety Stock: Extra inventory kept as a buffer to prevent stockouts.

This calculation ensures that you always reorder in time to meet demand, even if sales fluctuate or suppliers take longer than expected to fulfill their commitments.

How to Use the Reorder Point Calculator?

Step 1: Enter Average Demand

Input the average number of units your business sells per day.

Step 2: Enter Lead Time (days)

Type in the delivery time from your supplier, measured in days.

Step 3: Enter Safety Stock (units)

Add the number of extra units you want to keep in reserve to avoid stockouts.

Step 4: Get Your Reorder Point

The inventory reorder point calculator instantly displays the exact stock level at which you should place your next order.

This free reorder point calculator eliminates guesswork, making it easier to maintain a full inventory and keep your customers satisfied.

Examples of Calculating Reorder Point

Example 1: Emma’s Retail Store

Emma runs a small bookstore. On average, she sells 20 books per day. Her supplier’s lead time is 7 days, and she keeps a safety stock of 50 books.

Reorder Point = (20 × 7) + 50 = 190 books

When Emma’s stock falls to 190 books, it’s time to reorder. Using the reorder point calculator, she ensures popular titles are always available.

Example 2: Raj’s Manufacturing Business

Raj owns a factory that uses 100 units of raw material per day. His supplier takes 10 days to deliver, and he maintains a safety stock of 200 units.

Reorder Point = (100 × 10) + 200 = 1,200 units

Raj uses the inventory reorder point calculator to avoid halting production due to raw material shortages.

Example 3: Sophia’s E-Commerce Shop

Sophia sells skincare products online. Her average daily demand is 50 units, her lead time is 5 days, and she maintains a safety stock of 75 units.

Reorder Point = (50 × 5) + 75 = 325 units

By using the free reorder point calculator, Sophia consistently maintains sufficient stock to fulfill online orders, even during sales campaigns.

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Looking for Beyond Just Calculating the Reorder Point?

While our reorder point calculator makes it easy to know when to reorder, businesses often need more than manual calculations. That’s why we built Enerpize, a complete ERP and inventory management system.

With Enerpize Inventory Management Software, you can:

Track sales, purchasing, and stock across multiple locations
Generate real-time inventory and financial reports
Manage everything—from inventory to HR and accounting—in one platform

If you’re ready to go beyond a simple inventory reorder point calculator, Enerpize provides everything you need to streamline operations and scale your business.

Disclaimer

This free reorder point calculator is provided for informational purposes only. Results depend on the data you input and may vary based on real-world conditions such as supplier delays or seasonal demand. Always review results with your inventory manager or business advisor before making critical decisions.

FAQs

How is ROP calculated?

The reorder point (ROP) rule is:

ROP = (Average Daily Demand × Lead Time) + Safety Stock.

What is the formula for reorder?

The formula for reorder:

Reorder Point = (Average Daily Demand × Lead Time) + Safety Stock

How is the reorder point determined?

It is determined by combining average daily demand, supplier lead time, and safety stock.

What is an example of a reorder point model?

Emma’s bookstore model:

Daily demand = 20 books
Lead time = 7 days
Safety stock = 50 books
Reorder Point = (Average Daily Demand × Lead Time) + Safety Stock
ROP = 190 books

What factors are necessary to calculate the reorder point?

The three factors to consider when calculating ROP are Average Daily Demand, Lead Time, and Safety Stock.

Why is it important to calculate the reorder point?

Because it helps:

Prevent stockouts
Maintain smooth operations
Improve customer satisfaction
Reduce excess inventory and carrying costs

Which is not considered while calculating the reorder point?

The following factors are not considered when calculating the reorder point: seasonal demand changes, unexpected supplier delays, and future promotions or sales campaigns.