01
Formula used
Reorder point = average daily demand × lead time in days + safety stock.
For operational use, inventory position usually equals on hand + on order − committed or backordered demand.
Replenishment tool
Reorder point calculator
Estimate the inventory position at which a replenishment order should be triggered.
The reorder point equals expected demand during lead time plus safety stock. Compare the result with inventory position—not only on-hand inventory—when open supply and committed demand matter.
Replenishment policy
Estimated result
Demand during lead time504 units
Reorder point684 units
Compare with inventory position.
02
Use it when
- Setting a basic replenishment trigger for a stable SKU
- Testing how supplier lead-time changes affect the trigger
- Separating expected lead-time demand from the uncertainty buffer
03
How to interpret the result
- The trigger rises when demand, lead time, or safety stock rises.
- Use the same unit of measure for demand, stock, and the result.
- Review pack sizes, minimum order quantities, and order calendars separately.
Soberan
From calculation to operational decision
Use the result as a starting point, then keep data, policy, exceptions, and approvals inside the actual workflow.
Explore inventory replenishment →Frequently asked questions
Should I reorder when on-hand inventory reaches this number?
Usually the trigger should use inventory position, which includes open supply and subtracts committed demand. The exact policy depends on your fulfillment process.
Is reorder point the same as order quantity?
No. Reorder point determines when to order. Order quantity determines how much to order.
How often should reorder points be updated?
Review them when demand patterns, lead times, service targets, or supplier conditions change. High-velocity SKUs often need more frequent recalculation.