Reorder Point Calculator
Calculate the inventory reorder point — the stock level that should trigger a new purchase order — from usage rate, lead time and safety stock.
About the Reorder Point Calculator
The reorder point is the inventory level at which a business should place a new purchase order, timed so replacement stock arrives just as the current stock runs out — ideally without triggering a stockout or tying up excess cash in inventory sitting on the shelf.
Formula: Reorder Point = (Average Daily Usage × Lead Time in Days) + Safety Stock
The first term estimates how much inventory will be consumed during the wait between placing an order and receiving it, based on the typical daily usage rate. The safety stock buffer sits on top of that to absorb unexpected demand spikes, supplier delays or shipping disruptions. Retailers, manufacturers and warehouse managers use this exact formula inside inventory management systems to automatically trigger purchase orders at the right moment, balancing the cost of holding extra stock against the risk of running out.