Formula used
Reorder point = average daily sales multiplied by supplier lead time, plus safety stock.
Inventory tool
Balance stockout risk and cash flow by finding the exact inventory level where your next purchase order should be placed.
Inputs
Use recent sales velocity and realistic supplier lead times.
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Reorder when stock reaches 504 units. That covers 378 unitsof lead-time demand plus 126 units of safety stock.
Guide
Use this when a SKU is selling steadily and you need a purchase-order trigger that avoids both stockouts and cash-heavy overbuying.
Reorder point = average daily sales multiplied by supplier lead time, plus safety stock.
For stable products, a 5-14 day safety buffer is a practical starting point. Use a larger buffer for overseas suppliers, volatile demand, or launches driven by paid ads.