Free Reorder Point Calculator. Know exactly when to reorder inventory and prevent stockouts.
Free Reorder Point Calculator. Know exactly when to reorder inventory and prevent stockouts.
Generated: 1/13/2026, 7:17:19 AM | AskSMB.io
Average number of units sold or used per day
Number of days between placing and receiving an order
Extra inventory kept as a buffer
Average daily usage must be greater than zero
Reorder point (ROP) is the inventory level that triggers a new purchase order. It's calculated to ensure you place orders with enough time for new stock to arrive before current inventory runs out. Think of it as your inventory alarm system — when stock hits this level, it's time to reorder. The reorder point accounts for both the time it takes to receive new inventory (lead time) and your average daily usage during that period.
Average Daily Usage = Units sold or used per day
Lead Time = Days between order placement and receipt
Safety Stock = Buffer inventory for unexpected demand or delays
Demand during lead time = 20 × 7 = 140 units
Reorder point = 140 + 30 = 170 units
Reorder point and Economic Order Quantity (EOQ) serve different purposes but work together perfectly. EOQ tells you how much to order (the optimal quantity that minimizes costs), while reorder point tells you when to order (the inventory level that triggers an order). Use EOQ to determine your order size, and use reorder point to determine your order timing. Together, they create an efficient, automated inventory management system.
Safety stock is your insurance policy against uncertainty. It protects you from:
A good rule of thumb: safety stock should be 10-20% of your demand during lead time for stable products, or 25-50% for products with variable demand or unreliable suppliers.