# Reorder point calculator: when to order stock

> Find the stock level at which to reorder: daily demand × lead time + safety stock, with optional periodic review, days of cover and a stock chart over time.

Source: https://sourcesquid.co/tools/reorder-point/

Planning tool · free

# Reorder point calculator. Know when to order.

The reorder point (ROP) is the stock level at which you place the next order so it arrives before you run out: average daily demand × lead time + safety stock. Enter your demand, lead time and safety stock and this calculator gives the reorder point, days of cover and when your next order is due.

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Reorder point**0**

Days of cover at reorder**0**

Next order**–**

__Stock on hand __Reorder point __Safety stock __Order placed

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How it works

## Three steps. One clear answer.

  1. 01

Enter average daily demand, supplier lead time and your safety stock.

  2. 02

Add a review period if you only check stock weekly, plus your order quantity and current stock.

  3. 03

Read your reorder point, days of cover and the date your next order is due.

Method and sources

ROP = d × LT + SS, where d is average daily demand, LT is lead time in days from order to stock ready to sell, and SS is safety stock. With periodic review every R days, the level becomes d × (LT + R) + SS because stock is only checked at each review. Compare the reorder point with the inventory position: stock on hand plus stock on order minus backorders. Days of cover = stock ÷ daily demand.

Results are estimates to support your decisions. For binding figures, ask our team or your customs broker.

Reorder point questions

## Straight answers.

Anything else, ask us directly. A principal replies, not a bot.

[anirudh@sourcesquid.co](mailto:anirudh@sourcesquid.co)

### How do you calculate a reorder point?

Multiply average daily demand by the lead time in days, then add safety stock. At 40 units a day, a 45-day lead time and 417 units of safety stock, the reorder point is 2,217 units.

### What lead time should I use for goods from Asia?

The full time from placing the purchase order to stock ready to sell: production, inspection, inland transport, sea transit, customs and delivery to your warehouse. For sea freight from India, China or Vietnam this is often 45 to 90 days.

### Should the reorder point include stock on order?

Yes. Compare it with stock on hand plus stock already ordered but not yet received. Otherwise you may order twice when lead times are long.

### What is the difference between reorder point and safety stock?

Safety stock is the buffer for variation. The reorder point is the trigger level: expected demand during the lead time plus that buffer.

Use it with

## Tools that work well together.

[Planning**Safety stock** Safety stock is the extra stock held to cover swings in demand and in supplier lead time.](https://sourcesquid.co/tools/safety-stock/)[Planning**EOQ** Economic order quantity (EOQ) is the order size that minimises the combined yearly cost of placing orders and holding stock.](https://sourcesquid.co/tools/eoq/)[Planning**Inventory turnover** Inventory turnover is how many times you sell through your average stock in a period: cost of goods sold divided by average inventory.](https://sourcesquid.co/tools/inventory-turnover/)[Logistics**Holiday planner** Public holidays and festival shutdowns such as Chinese New Year, Diwali and Tet can stop factory production in China, India and Vietnam for days or weeks.](https://sourcesquid.co/tools/festival-and-holiday-planner/)

From numbers to factories

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