Formula
The reorder point covers demand during the lead time, plus safety stock you already know:
Reorder point = units per day × lead time + safety stock
The safety-stock page calculates that buffer. This page uses the buffer you type.
Assumptions
- Daily demand stays at the number you enter.
- Lead time is in days.
Worked example
20 units a day, a 14-day lead, and 30 units of safety stock reorder at 310 units.
Input definitions
- Lead time
- Days from placing the order until it arrives.
- Safety stock
- Extra units held for delay or a demand spike. Zero is allowed.
Limitations
This does not forecast demand. It uses the daily rate and the safety stock you type.
Questions
How do I calculate the safety stock?
Use the safety stock calculator, then type that result here.
Can the lead time be zero?
Yes. The reorder point is then just the safety stock.