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Reorder point and safety stock calculator

Find the stock level that should trigger your next order, so a line doesn't run out before the delivery arrives.

Sold while waiting for delivery
50 units
Safety stock
70 units
Reorder when stock reaches
120 units

How the reorder point works

The reorder point is the stock you will sell while waiting for a delivery, plus a buffer for when things go wrong.

Reorder point = (average daily sales × average lead time) + safety stock.

How safety stock is worked out here

This tool uses a common rule of thumb: safety stock = (highest daily sales × longest lead time) − (average daily sales × average lead time).

It covers your busiest days and slowest deliveries happening together, which makes it cautious. If stock is expensive to hold or goes out of date, you may choose to hold less.

An example

You sell an average of 10 units a day and delivery takes 5 days, so you sell 50 units while waiting. On your busiest days you sell 15, and your slowest delivery took 8 days, so the worst case is 120 units.

Safety stock is 120 − 50 = 70 units, and the reorder point is 120 units.

This tool gives general guidance only and isn't tax or accounting advice.

Doing this every day?

OpesFlux tracks stock per location and sends low-stock alerts, so you can see which lines need reordering. See the features.

More free tools

  • VAT calculator: Add VAT to a price or take it off, at 20%, 5%, 0% or a rate you enter.
  • Profit margin calculator: See margin and markup from cost and selling price, or find the price for a target margin.
  • Invoice generator: Fill in a UK invoice with VAT and save it as a PDF, right in your browser.

Questions people ask

It is the stock level at which you should place a new order, so the delivery arrives before you run out.

Count the days from placing an order to having the goods ready to sell, across your last few orders from that supplier. Use the average and the longest.

Whenever sales or a supplier's delivery times change noticeably, and before seasonal peaks. A figure based on a quiet month will be too low for a busy one.

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