INVENTORY TOOL

Inventory Reorder Point Calculator

Estimate a reorder point using average daily usage, supplier lead time and safety stock. Useful for restaurants, cafes, bakeries, retail and other small businesses.

Enter your numbers to calculate a reorder point.
Formula: average daily use × lead time + safety stock. Treat this as a planning estimate, not a guarantee.
HOW IT WORKS

What is a reorder point?

A reorder point is the inventory level that tells you when it is time to place the next order. It is different from the order quantity: the reorder point answers when to order, while your purchasing plan decides how much to order.

Reorder point = average daily use × supplier lead time + safety stock

This simple version is useful when you already have a reasonable estimate of daily usage, supplier lead time and the extra buffer you want to keep. If demand or delivery times vary heavily, use a more detailed inventory method before making larger purchasing decisions.

Worked example

Suppose a cafe uses 20 units per day, its supplier normally needs 4 days to deliver, and the owner keeps 30 units as safety stock. Expected lead-time demand is 80 units, so the estimated reorder point is 110 units. When on-hand stock approaches that level, it is time to review the next purchase.

20units used per day
4 dayssupplier lead time
110estimated reorder point

When this calculator is useful

  • Planning ingredients, packaging or supplies that are used repeatedly.
  • Adding a consistent reorder trigger instead of waiting until stock looks low.
  • Comparing different lead-time and safety-stock assumptions before purchasing.
  • Reviewing one SKU quickly before moving the decision into a full inventory tracker.

Common reorder-point mistakes

  • Using stale daily usage: update the average when sales or production changes.
  • Ignoring supplier variability: a four-day average may not protect you if deliveries regularly take longer.
  • Confusing reorder point with order quantity: reaching 110 units does not mean you should order 110 units.
  • Using the same buffer for every item: critical or hard-to-source items may need a different safety-stock policy.

Related planning tools

If you make products in batches, pair this with the Bakery Production Capacity Calculator. For drink shops, estimate ingredient demand first with the Boba Ingredient Usage Calculator.

Reorder point FAQ

Does this calculator tell me how much to order?

No. It estimates the stock level that can trigger a purchase review. Order quantity is a separate decision based on demand, storage, supplier minimums, cash flow and other business constraints.

What should I use for average daily use?

Use a recent period that reflects normal operations. If demand is seasonal or highly variable, compare multiple periods rather than relying on one average.

What is safety stock?

Safety stock is an extra buffer held above expected lead-time demand. This calculator lets you enter the buffer directly rather than estimating a statistical service level.