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Reorder Point Calculator

Free, in-browser. The full statistical reorder point — lead-time demand plus safety stock computed from both demand variability and lead-time variability — with pack-size rounding and a reorder-trigger check against your current inventory position. Nothing leaves your machine.

Lead-time demand: 60 units · Safety stock: 24.7 units
Reorder point: 84.7 units
Inventory position (on hand + on order): 80 units · about 6.7 days of cover
At or below the trigger. Gap back to the threshold: 5 units.

The reorder point is a trigger, not an order quantity. The displayed gap is rounded to the entered pack size; choose a replenishment quantity separately using your review cycle, commitments, minimum orders, and expiry constraints. Inventory position here assumes no unfilled commitments and that incoming stock is usable. The variability model assumes independent demand and lead times with a normal approximation.

The formula

ROP = (daily demand × lead time) + z × σ_LTD
σ_LTD = √(LT × σ_d² + d² × σ_LT²)

The first term is what you expect to sell while the replenishment order is in transit. The second is safety stock: the buffer sized to your chosen service level (z) against the combined variability of demand and lead time. The normal approximation assumes independent daily demand and supplier lead time. A chosen service level is a model target, not a guarantee. The trigger check compares the ROP against your inventory position (on hand + already on order), not just what's on the shelf — forgetting inbound POs is the classic double-order.

How to use this

  1. Pull average daily sales and the standard deviation from your POS (last 30–90 days; Excel: =AVERAGE(...) and =STDEV.S(...)).
  2. Use the supplier's actual lead time from recent orders, not the promised one — and its variability if deliveries wobble.
  3. Pick a service level: 95% is a sound default; 99% for items whose stockout costs real revenue (see stockout cost).
  4. Enter what's on hand and on order, and the tool tells you whether inventory is at the trigger and the gap back to it, rounded to your pack size. Choose order quantity separately.

To evaluate how inventory signals turn into reviewed supplier orders in LineNow, bring a real item, supplier lead time, and incoming order. Compare the recommendation with your own purchasing policy and review core and add-on terms.

Related

  • Reorder point — the concept
  • Safety stock
  • Lead time
  • PAR Level Calculator
  • Shopify Low Stock Alerts and Reorder Points
  • The Lightspeed Reorder Report
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