How to Calculate Reorder Point for Your Shop

Reorder point = the stock level at which you should place a new order.

Simple Formula

Reorder point = (Daily sales × Lead time in days) + Safety stock

Example: You sell 10 units/day, supplier takes 5 days, you want 20 units safety stock. Reorder point = (10 × 5) + 20 = 70 units.

Tips

• Fast movers – Lower reorder point, order more often
• Slow movers – Higher reorder point, order less often
• Seasonal – Adjust before festivals and peak seasons
• Lead time – Factor in supplier delay and transport

Stockkeeper’s low-stock alerts notify you at your reorder point. [Join the waitlist](/ “#waitlist).