Handeware
Business

Reorder point

104

This is arithmetic for general information, not financial advice.

Reorder Point Calculator

The reorder point is the stock level at which you should place the next order, so new stock arrives before the shelf runs empty. Change the numbers and the point updates.

How it works

Multiply the units you sell in a day by the days a supplier takes to deliver. Add a safety stock, a spare amount for busy days or late deliveries. The total is the level to reorder at.

Worked example

Selling 12 units a day, with 7 days to get new stock and 20 units spare, reorder when you have 104 units left.

Questions

How big should safety stock be?

There is no single right number. Many shops set it from how often deliveries run late and how much an empty shelf costs them.

What if my sales change by season?

Use a busy-season daily number for that time of year, and update it when the season ends.

Does this count stock already on order?

Only if you handle it yourself. Compare your units on hand with the point, and count anything already on the way as stock you have.

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