Inventory Reorder Calculator
Determine safety stock levels, lead time demand, and your exact Reorder Point (ROP).
Daily Demand & Lead Times
Current Stock & Value
Inventory Insight
Estimating inventory safety thresholds...
Reorder Point (ROP)
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Safety Stock
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Lead Time Demand
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Days Cover Left
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Inventory Matrix
Inventory Reorder Point & Safety Stock Calculator
Determine Lead Time Demand, Safety Stock, and Reorder Points (ROP) to prevent out-of-stock events.
Sustaining Stock Flow: Reorder Points (ROP)
Maintaining optimal inventory levels is a balancing act for e-commerce brands. Running out of stock (stockouts) leads to lost sales and hurts your search rank on Amazon and Etsy, while overstocking ties up cash in storage fees. Determining your Reorder Point (ROP)—the exact stock level that triggers a new purchase order—is key to keeping operations running smoothly.
Inventory Control Formulas:
- Lead Time Demand: $\text{Lead Time Demand} = \text{Average Daily Sales} \times \text{Lead Time (Days)}$
- Safety Stock: $\text{Safety Stock} = (\text{Max Daily Sales} \times \text{Max Lead Time}) - (\text{Avg Daily Sales} \times \text{Avg Lead Time})$
- Reorder Point (ROP): $\text{ROP} = \text{Lead Time Demand} + \text{Safety Stock}$
Key Takeaways
- Reorder points ensure new stock arrives just as your current inventory runs low, avoiding stockouts.
- Safety stock acts as a buffer against unexpected surges in customer demand or supplier delivery delays.
- Review your daily sales rate and lead times regularly to adapt to seasonal shifts and supply chain changes.