Free tool · Reorder level calculator
Reorder Level Calculator
Find the stock level at which to place your next order, so a product does not run out while the supplier delivers. Enter what you sold, the supplier's lead time and a safety margin; add today's stock to see whether to order now and how much.
Free, no sign-upRuns in your browserUpdated
From your sales report or register.
Days from placing the order until the stock is on your shelf.
Cover for a late supplier or a busy day.
Days of sale after the delivery arrives.
Reorder level
0 pcs
Enter sales and lead time
- Average sale per day
- —
- Sold during the lead time
- —
- Safety stock
- —
Reorder level = average daily sale × lead time + safety stock.
Short answer
Find the stock level at which to place your next order, so a product does not run out while the supplier delivers. Enter what you sold, the supplier's lead time and a safety margin; add today's stock to see whether to order now and how much.
Roman Urdu mein
Maal kab mangwana hai, ye yahan nikalein: roz ki Sale, supplier ke maal pohanchane ke din aur thora extra. Abhi ka Stock likhein to pata chalega ke abhi order karna hai ya nahi, aur kitna.
Key facts
- Reorder level
- Average daily sale × lead time + safety stock
- Safety stock (simple)
- Average daily sale × extra days
- Safety stock (from a busy week)
- Most sold in a day × longest lead time − usual lead-time sale
- Order quantity
- Enough for the lead time and the days you choose, topped up to safety stock
How to use the reorder level calculator
Step 1: Enter what you sold
Quantity sold and over how many days: for example 240 packets in 30 days. Use a normal month, not Ramadan or a sale week.
Step 2: Enter the lead time
Days from placing the order to having the stock on your shelf, including the day the salesman visits and any delay at the market.
Step 3: Choose safety stock
Extra days of sale is simplest. From a busy week uses the most you ever sold in a day and the longest the supplier has taken.
Step 4: Add stock on hand
Optional. You see how many days it lasts, whether to order now, and a suggested quantity to cover the lead time plus the days you choose.
How it's calculated
During the lead time you keep selling, so the order must go out while you still have enough to last until delivery. That amount is average daily sale × lead time. Sales and deliveries vary, so a safety stock is added on top:
- Simple: safety stock = average daily sale × extra days you want to keep
- From a busy week: safety stock = (most sold in one day × longest lead time) − (average daily sale × usual lead time)
Reorder level = average daily sale × lead time + safety stock. When stock falls to that number, you order. This is the standard reorder point method used in stock control (see the source below).
Worked example
You sold 240 packets of a biscuit in 30 days: 8 a day. The distributor delivers 4 days after you order, and you want 3 extra days as safety.
- Sold during the lead time = 8 × 4 = 32
- Safety stock = 8 × 3 = 24
- Reorder level = 32 + 24 = 56 packets
You have 70 on the shelf, which lasts about 8 days, so you do not order yet. When you do, ordering for 15 days after delivery means 8 × (4 + 15) + 24 − 70 = 106 packets. With the busy-week method (14 sold on the best day, 6 days on the slowest delivery) safety stock becomes 84 − 32 = 52 and the reorder level 84.
Doing this for hundreds of products by hand is not practical. Nafaa's low stock list works out days of cover for every product from its own sales and suggests the quantity to order, grouped by supplier, so you can turn it into a purchase order in one step.
Sources
- Reorder point · Wikipedia · Accessed
Common questions
What is the difference between reorder level and minimum stock?
Minimum stock, or safety stock, is the cushion you never want to go below. Reorder level is higher: it is the safety stock plus what you will sell while the order is on its way. If you order only when you reach minimum stock, you will dip into that cushion on every delivery. Set your low stock alert at the reorder level, not at the minimum.
How often should I recalculate reorder levels?
At least every season, and whenever a supplier changes delivery days. Sales of many items change sharply around Ramadan, Eid, school openings and winter, so a level set in a quiet month leaves you short in a busy one. A system that recalculates from recent sales every day avoids the problem; with this calculator, redo your top sellers each month.
Should every product have the same safety days?
No. Give more safety days to items customers will not wait for and that you cannot borrow from a nearby shop, such as milk, bread, cooking oil and medicines, and to items from slow or unreliable suppliers. Slow-moving or expensive items can carry fewer days, because extra stock ties up cash and shelf space.
Related
Glossary
Reorder Level
A reorder level is the stock quantity at which a new order should be placed, so stock arrives before the shelf runs empty.
Glossary
Purchase Order (PO)
A purchase order is a document a buyer sends a supplier listing the items, quantities and agreed prices it wants to buy.
Stock Take Sheet (Excel, Printable)
A printable stock count sheet: product, SKU, unit, system stock and a box for the counted quantity. Type the counts back in and the sheet works out the difference and its value at cost, with a total for the shrinkage or gain.