PALLAS / CALCULATOR
Reorder Point Calculator
Work out the stock level at which you should place a replenishment order from average daily demand, lead time and safety stock.
INPUT
Enter values
Method & formula
The calculator estimates how much stock you will use while the next order is in transit, then adds your safety-stock buffer. When available stock reaches that level, it is time to reorder under this model.
- Reorder point = average daily demand × lead time + safety stock
Example
Average demand of 10 units a day, a seven-day lead time and 20 units of safety stock gives a reorder point of 90 units.
FAQ
Does this account for demand variability?
It can. Enter maximum daily demand and maximum lead time together to derive a variability buffer, or leave them blank and use your own safety-stock figure.
Should I use sales or shipments as demand?
Use the measure that best represents actual stock consumption for the item, and keep the time unit consistent with lead time.