Inventory Reorder Point
Reorder point from daily demand, supplier lead time and safety stock.
Inputs
units/day
days
units
units
Results
- Reorder point
- 710 units
- Lead-time demand
- 560 units
- Days of cover
- 15 days
- Reorder now?
- Yes — at or below reorder point
Formula
Reorder point = Daily demand × Lead time + Safety stock
Assumptions & limits
- Demand and lead time are averages; raise safety stock when either varies a lot.
Worked example
40 × 14 + 150 = 710 units; with 600 on hand you should reorder.