Reorder Point Calculator
The reorder point is the stock level at which you must place a new order so the material does not run out before the delivery arrives. It is calculated from daily consumption multiplied by lead time, plus a safety stock buffer.
Formula: Reorder Point = Daily Consumption × Lead Time + Safety Stock.
How do you read the result?
Your reorder point is the point at which you should reorder immediately. If your current stock is below it, time is running out. The safety stock below that is your absolute minimum. If you fall below it, a stockout is looming.
Note: This calculator assumes steady daily consumption. For highly variable demand, use the Safety Stock Calculator.
Formulas
Reorder point
Daily consumption × Lead time + Safety stock
Determine safety stock
Suggestion: Daily consumption × Safety factor (days)
Maximum stock
Safety stock + Optimal order quantity
Example: NYM cable
- Daily consumption15 coils
- Lead time5 days
- Safety stock30 coils
15 × 5 + 30 = 105
105 coils
Reorder point
Frequently asked questions about reorder points
Sources and further reading
Sources
- Panko, R. (2005): What We Don’t Know About Spreadsheet Errors Today, University of Hawaii
- Tempelmeier, H. (2020): Bestandsmanagement in Supply Chains, Norderstedt: Books on Demand
- Gudehus, T. (2012): Logistik 2: Netzwerke, Systeme und Lieferketten, Springer
- Bitkom Research (2025): Digitalisierung im Handwerk 2025
Next steps
The reorder point shows you when to reorder. But what do stockouts and emergency runs actually cost you? The warehouse cost calculator shows it in concrete numbers.
