How the calculation works
Multiply your average daily unit sales by the number of days it takes your supplier to deliver. Add your safety stock, then round up to a whole unit.
At 8 units a day and a 10-day lead time, you expect to sell 80 units while waiting. With a 20-unit buffer, your reorder point is 100 units.
What to keep in mind
This is a simple estimate assuming steady sales and a consistent lead time. Review it for seasonal demand, promotions, and supplier delays. Compare the threshold with inventory position (stock on hand plus incoming stock, less unfulfilled demand) to avoid duplicate orders. It tells you when to review reordering, not how much to purchase.
Doing this for every product?
A calculator is a useful starting point. If keeping stock records current is becoming the hard part, explore whether dedicated software fits your workflow.
Read the inFlow buying guide →