What is a reorder point?
It is the estimated stock level at which a new order should be considered, based on lead-time demand and safety stock.
Inventory operations toolkit
Turn your stock count, sales pace, costs, and lead time into a clear inventory operations summary — calculated locally in your browser.
The planner estimates daily demand from your monthly average, then multiplies it by supplier lead time and adds a safety-stock buffer for the reorder point. It values current stock at cost, estimates coverage at the current sales pace, and annualizes unit sales to estimate turnover.
With 300 units on hand, 150 average monthly sales, a 14-day lead time, and 7 days of safety stock, daily demand is 5 units and the estimated reorder point is 105 units. At a unit cost of 20, the stock value is 6,000.
It is the estimated stock level at which a new order should be considered, based on lead-time demand and safety stock.
The planner divides average monthly unit sales by 30 for a simple planning estimate.
It is a buffer of inventory intended to protect against demand variation or replenishment delays.
Annualized unit sales are divided by average inventory units.
It gives a more representative turnover estimate than a single end-of-period stock count.
It estimates how long current units on hand might last at the entered average monthly sales rate.
It is designed for physical inventory; service businesses may instead use the pricing and profitability tools.
No. It only changes formatting and does not apply exchange rates.
No. The calculation and exports are generated in your browser.
Yes. CSV and PDF exports use the same calculated result displayed in the planner.
No. It uses your entered monthly average and does not make a demand prediction.
No. It is an illustrative operational calculation; validate material decisions using your own records and advisors.