How to use this calculator
A reorder point tells you when to order. Reorder when the stock on hand drops to that number and, if your usage and supplier are steady, the new delivery lands about when the shelf would otherwise run dry, with a buffer left over.
Enter how many units you sell or pour through on an average day, how many days pass between placing an order and having it on the shelf, and a safety stock. Choose units if you think in bottles and cases, or days if you think in cover. The calculator multiplies usage by lead time and adds the buffer. The optional fields add an economic order quantity.
A worked example
You sell 6 bottles of a vodka a day, your distributor delivers in 3 days, and you want 2 days of cover. Safety stock is 12 bottles. Reorder point = 6 x 3 + 12 = 30 bottles, which is 5 days of cover. If delivery slips to 4 days, the point becomes 36 bottles, so ordering at 30 leaves you about a day short unless the buffer absorbs it.
Choosing a safety stock
Many operators keep a day or two of cover on steady sellers and more on items that are hard to substitute or hard to get. These are rules of thumb, not research findings. Weigh the cost of a stock-out against the cost of the cash and shelf space the buffer ties up.
Frequently asked questions
What is a reorder point?
The stock level at which you place a new order, so the delivery arrives before you run out. It covers the units you expect to sell while you wait for the order, plus a safety buffer.
How is the reorder point calculated?
Reorder point = average daily usage x lead time in days + safety stock. At 6 units a day, a 3 day lead time and 12 units of safety stock, the reorder point is 30 units.
What is safety stock?
Extra units kept on hand to cover busier-than-usual days or a late delivery. You can enter it as a number of units or as days of cover, which is units divided by daily usage. Many operators keep somewhere between a day and a week for fast sellers, but the right amount depends on how costly a stock-out is for you.
What if my usage varies a lot?
Use a realistic average over a recent period that includes a busy stretch, and raise the safety stock for items with spiky sales such as holiday or event items. Recheck after any promotion, since a one-off spike can distort the average.
What is EOQ?
Economic order quantity is the order size that balances the cost of placing orders against the cost of holding stock. EOQ = square root of (2 x annual demand x cost per order / annual holding cost per unit). It is a starting point; case packs, minimum orders and shelf space also matter.
How often should I recheck my reorder points?
Whenever your usage, supplier lead time or price changes, and as a habit every month or two for your top sellers. Seasonal items deserve a check at the start of each season.