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Reorder Point Calculator

Three inputs, three results. Find out at what stock level you need to reorder so your warehouse never runs empty.

How the reorder point calculator works

The calculator combines three standard inventory management formulas. Enter your daily consumption, lead time, and safety stock. The three results show you when to reorder, how much buffer you need, and the maximum your stock should reach.

AssumptionDefault
Safety factor2 days
Optimal order quantity200 units
Working days per week5

Reorder point

Daily consumption × Lead time + Safety stock

Determine safety stock

Suggestion: Daily consumption × Safety factor (days)

Maximum stock

Safety stock + Optimal order quantity

Model limitations

The formulas assume steady daily consumption and a fixed lead time. In practice, both fluctuate. For items with highly variable demand or unreliable suppliers, set the safety stock higher accordingly.

Continue calculating offline with your own data

The Excel template contains all three formulas. Enter your items and calculate the reorder point, minimum stock, and maximum stock for each one.

Download template

Worked example: Electrical contractor with NYM cable

An electrical contractor with 6 employees uses NYM-J 3x1.5 cable daily. The wholesaler's lead time is 5 working days.

Inputs

  • 15 coils daily consumption (average over 6 weeks)
  • 5 working days lead time (actually measured)
  • 30 coils safety stock (2-day buffer)
  • Optimal order quantity: 200 coils

Result

105 coils

A reorder is triggered at 105 coils. During the 5-day lead time, the business uses 75 coils. That leaves 30 coils as a buffer. The delivery arrives before the safety stock is touched.

MetricResult
Reorder point105 coils
Safety stock30 coils
Maximum stock230 coils

Frequently asked questions about reorder points

Reorder point = Daily consumption × Lead time + Safety stock. All three variables must use the same time unit (working days).
Minimum stock (also called safety stock or iron reserve) is the buffer that should never be breached. The reorder point sits above it and marks the moment to place a new order. When stock hits the reorder point, there is just enough to last until the delivery arrives without dipping into the safety stock.
A common method: Daily consumption × Safety factor in days. The safety factor typically ranges from 1 to 3 days, depending on supplier reliability. The calculator shows a suggestion based on your safety factor. You can always adjust the value manually.
Maximum stock = Safety stock + Optimal order quantity. It shows how full your warehouse should get at most, so you don't tie up unnecessary space and capital.
Only for instant delivery (pick-up at the wholesaler, on-site stock). In that case, the reorder point equals the safety stock. In practice, almost every procurement has a lead time, even if it is just one day.
At least quarterly. Immediately after a supplier change, seasonal shifts, or changes in order volume. Setting the reorder point once and never adjusting it means you will eventually order too early or too late.

Sources and further reading

Sources

Read more

Next steps

The reorder point tells you when to reorder. But what do stockouts and emergency runs actually cost you? The warehouse cost calculator puts concrete numbers on it.

Go to warehouse cost calculatorRead the full guide
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