Inventory Reorder Point Calculator
Calculate when to reorder stock using average daily demand, supplier lead time and safety stock, plus an optional economic order quantity (EOQ).
Your results
Calculation breakdown
- Reorder point
- 20 × 10 + 100 = 300 units
- EOQ
- √(2 × 7300 × $50.00 ÷ $4.00) = 427 units
Assumptions
- Demand and lead time are assumed constant; real demand variability may require a larger safety stock.
- EOQ assumes constant ordering and holding costs and does not model quantity discounts.
- Reorder point triggers a new purchase order when on-hand stock reaches this level.
Results are estimates only and are not financial, tax, legal or credit advice.
How this calculator works
Enter your average daily demand, supplier lead time in days and desired safety stock to calculate the reorder point at which you should place a new purchase order, plus an optional economic order quantity (EOQ) based on annual demand, order cost and holding cost.
Frequently asked questions
What is a reorder point?
The inventory level at which you should trigger a new purchase order so stock doesn't run out before the new order arrives.
What is safety stock for?
A buffer of extra stock to protect against demand spikes or supplier delays beyond your average lead time.
What is EOQ?
The economic order quantity is the order size that minimises the combined cost of ordering and holding inventory.
Results are estimates only and are not financial, tax, legal or credit advice.