Reorder Point & Safety Stock Calculator
When to reorder and how much safety stock to keep.
Transport, handling, receiving
About 4,2 days left before ordering
Value: $ 675.000
- Demand during the lead time
- 140 unidades
- Economic order quantity (EOQ)
- 484 unidades
- Days of coverage with current stock
- 12,5
- Service level z-factor
- 1,645
Calculate a product'sreorder point(when to order again) andsafety stock(how much to keep in case demand rises or the supplier is late). Optionally, calculate theeconomic order quantity(how much to order each time).
Formulas: safety stock = z × standard deviation of daily demand × √(lead time). Reorder point = daily demand × lead time + safety stock. Economic order quantity = √(2 × annual demand × ordering cost ÷ annual cost of holding one unit).
When to use this tool
- So you don't run out of your best-selling products.
- Before a peak season, to adjust safety stock.
- When negotiating lead times with a supplier.
- To decide how much to order each time without tying up capital.
How to calculate the reorder point
- 1Enter how many units you sell on average per day and how much those sales vary (standard deviation).
- 2Enter how many days your supplier takes to deliver (lead time).
- 3Choose the service level: how often you want to avoid running out of stock.
- 4Enter your current stock to see whether it's time to order.
- 5Optional: add costs to calculate how much to order each time.
Inventory that updates itself, in all your warehouses
The reorder point only works if inventory is up to date. In Katuq every order from any channel deducts inventory from the right warehouse, and Opttia, the AI agent layer for purchasing, analyzes inventory and demand to suggest what and how much to buy.