Reorder Point Calculator
Reorder Point Calculator
Calculate the stock level at which you must place a new order to avoid a stockout during supplier lead time.
Average units sold or consumed per day
Days from order placement to receipt
Standard deviation of daily demand
Standard deviation of lead time
Target stock availability rate
Reorder Point Results
Reorder Point
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Units, place order at this level
Safety Stock Included
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Buffer units in ROP
Avg Demand During LT
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Expected consumption
Max Demand During LT
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Worst-case scenario
Reorder Point Formula
ROP = (Avg Daily Demand × Lead Time) + Safety Stock
Safety Stock = Z × √(LT × σd² + d² × σLT²)
Z = service level factor • σd = demand std dev • σLT = lead time std dev
What Is a Reorder Point?
The reorder point (ROP) is the inventory level at which you must place a new purchase order so that stock arrives before you run out. It accounts for average demand during lead time plus a safety buffer for variability.
Why ROP Matters for Pakistan SMEs
Pakistani businesses frequently face extended and unpredictable lead times. A correctly calculated ROP ensures you trigger replenishment early enough to cover delays, without over-ordering and tying up working capital.
What if I ignore the reorder point? ▼
You risk stockouts, lost sales, and emergency purchases at 15-30% premium cost. In Pakistan's SME context these emergency costs are one of the most common and avoidable supply chain losses.
How often should I recalculate ROP? ▼
Quarterly at minimum, or whenever demand patterns shift, lead times change, or you change suppliers. Seasonal businesses should recalculate before each peak season.