Free tool
Reorder point calculator
A reorder point is the stock level at which you place your next order so new stock arrives before you sell out. Multiply your average daily sales by your supplier's lead time in days, then add safety stock. Sell 10 a day with a 14 day lead time and a 7 day buffer, and your reorder point is 210 units.
Reorder point calculator
How to use it
- Work out your average daily sales. Take the units sold over a recent window and divide by the number of days in it. 900 units over 90 days is 10 a day. Take refunds back out first so you do not plan for sales that were reversed.
- Ask your supplier for their lead time. Lead time is the number of days between placing an order and the stock being on your shelf, including shipping and receiving. Use the time they actually take rather than the time they quote.
- Choose a safety buffer in days. Pick how many extra days of stock you want to hold against a late delivery or a busy week. Steady sellers need only a few days. Products whose sales swing about need more.
- Read the reorder point and set the alert. The calculator multiplies daily sales by lead time, adds the buffer in units, and rounds up. Set that number as the level at which you reorder, and revisit it when your sales rate moves.
Every term used here is defined in the inventory planning glossary, and the arithmetic behind all of it is worked through on how inventory forecasting works.
Questions merchants ask
What is the reorder point formula?
Reorder point equals average daily sales multiplied by lead time in days, plus safety stock. Safety stock is often held as a number of days of cover, in which case it is average daily sales multiplied by those buffer days. Selling 10 a day with a 14 day lead time and a 7 day buffer gives (10 x 14) + (10 x 7) = 210 units.
Should the reorder point include stock already on order?
The reorder point itself does not, but your decision should. Compare the reorder point against your on-hand stock plus anything already inbound on an open purchase order. Skipping that step is the most common way a store double-orders a product that is already on its way.
How often should a reorder point be updated?
Whenever the sales rate or the lead time behind it changes. A reorder point set from last spring's sales is wrong by the size of the change in demand. Recalculating monthly is a reasonable habit for a hand-run list, which is one reason planning software recomputes it every night.
Is a reorder point the same as a minimum stock level?
Not quite. A minimum stock level is usually a round number someone picked. A reorder point is derived from how fast the product sells and how long the supplier takes, so it moves when either of those moves. A flat minimum of 50 units means different things for a product selling 1 a day and one selling 10 a day.
Every product's reorder point, kept current
Replinish works this out for every variant in your Shopify store from your own sales history, recomputes it overnight, and shows the four inputs behind each number.
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