Reorder Point Calculator

About this calculator

The reorder point is the inventory level at which a new purchase or production order should be triggered so stock doesn’t run out before the replenishment arrives. It’s calculated as the average demand during the supplier’s lead time, plus a safety stock buffer to absorb the natural swings in daily sales or lead-time length: Reorder Point = (average daily demand × lead time in days) + safety stock.

Set the reorder point too low and a warehouse risks stockouts and lost sales while waiting for a new shipment; set it too high and cash gets tied up in excess inventory sitting on shelves. Retailers, manufacturers, and e-commerce fulfillment teams use this figure inside their inventory management systems to automate purchase-order triggers, and it works hand-in-hand with the Economic Order Quantity (EOQ) — the reorder point tells you when to order, EOQ tells you how much.