Reorder Point & Safety Stock Calculator

It's Tuesday morning and your best seller is down to a few boxes on the shelf. Your supplier needs two weeks to deliver, and you can't tell whether you should have ordered yesterday or can wait. Running out means lost sales and unhappy customers; ordering too early ties up cash. Enter your average daily sales, your supplier's lead time and what you have on hand, and see when to reorder and how much buffer to keep.

FAQ

What is a reorder point?

It is the stock level at which you should place a new order so that stock arrives before you run out. It equals the sales you expect during the supplier lead time plus your safety stock.

What is safety stock?

Safety stock is the extra inventory you keep as a buffer against sales spikes or late deliveries. It is not meant to be sold in normal weeks, only to absorb surprises.

Should I use safety days or max daily sales?

Safety days is the simplest: pick how many extra days of sales you want covered. The max daily sales method adds (max daily sales minus average daily sales) multiplied by lead time, which suits products with noticeable demand peaks. Use whichever matches how your sales behave.

How do I find my average daily sales?

Take total units sold over a recent period, such as the last 30 or 90 days, and divide by the number of days. If you have seasonal swings, use a period that reflects the season you are planning for.

What lead time should I enter?

Count the full time from placing the order to having the goods ready to sell: production, shipping, customs and receiving. If your supplier's delivery times vary, use a realistic slower figure rather than the best case.

What does 'days of stock left' mean?

It is your current stock divided by average daily sales, so it shows how long you can keep selling at the usual pace. Compare it with your lead time: if it is shorter, you risk a stock-out before the next delivery.

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