What this calculator tells you

A reorder point is the inventory level that should trigger a new purchase order. It gives the supplier lead time and demand variability room before stock runs out.

Reorder point = average daily sales × (supplier lead time + safety stock days).

When to use it

Use it when a product has a stable sales pattern and you need a simple order trigger rather than a full inventory system.

Use conservative inputs

Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.

Watch the common mistake

Using only supplier lead time can leave no buffer for a spike in demand or a late shipment.

Frequently asked questions

What is safety stock?

Safety stock is extra inventory held to absorb demand spikes and lead-time delays. It is usually chosen from historical variability.

Should I use units or revenue?

This calculator uses units, because reorder points are usually managed at the SKU level.

Does this work for seasonal products?

Treat it as a starting point. Seasonal products need separate demand assumptions for each season or launch window.

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