How it works
Reorder point = mean daily demand × replenishment lead time + safety stock; round upward to a whole unit.
Input definitions
- Average daily unit demand
- Enter the value in the labeled unit.
- Replenishment lead time (days)
- Enter the value in the labeled unit.
- Safety stock (units)
- Enter the value in the labeled unit.
A worked example
- Average daily unit demand
- 20
- Replenishment lead time (days)
- 7
- Safety stock (units)
- 50
Assumptions & limits
Planning model using entered costs and policies, not country-specific law or a forecast. Use one currency and consistent time periods.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Is reorder point the number of units I should buy?
No. It is the inventory-position threshold for placing an order. EOQ, pack size, minimum orders and storage constraints determine the separate order quantity.
How does Inventory reorder point work?
Reorder point = mean daily demand × replenishment lead time + safety stock; round upward to a whole unit.
What are the limits of Inventory reorder point?
Planning model using entered costs and policies, not country-specific law or a forecast. Use one currency and consistent time periods.