🔔 Reorder Point Calculator

The Reorder Point (ROP) is the inventory level at which a new order must be placed, given by the standard formula Reorder Point = (Average Daily Demand × Average Lead Time) + Safety Stock. The first term (average daily demand × average lead time) is the inventory expected to be consumed during the lead time between placing and receiving an order, while safety stock is the buffer against demand/supply variability. For example, with an average daily demand of 50 units, a 7-day average lead time, and 87 units of safety stock: Reorder Point = (50 × 7) + 87 = 350 + 87 = 437 units.

The standard workflow is to first compute safety stock with the Safety Stock Calculator (from service level, lead time, and demand standard deviation), then feed that value directly into this calculator's safety stock field to get the reorder point. Triggering a new order the moment inventory hits the reorder point ensures inventory is replenished before safety stock is depleted during the lead time. Recalculate periodically whenever lead time or daily demand changes.