Reorder point
A reorder point is the stock level at which you need to buy more. It is set from how fast the item sells and how long the supplier takes to deliver, plus a buffer for both being unpredictable.
Also searched as: reorder level, minimum stock level, when to reorder
Updated July 2026
The arithmetic is average daily usage multiplied by lead time in days, plus safety stock. An item selling 12 a day from a supplier who takes 10 days needs 120 units before you even consider a buffer.
Most stockouts are not caused by getting the maths wrong. They are caused by nobody looking. The number sits in a spreadsheet that is reviewed weekly, or when someone notices a gap on the shelf, and by then the lead time has already started.
Setting reorder points per location rather than globally matters as soon as you have more than one branch. Total stock can look healthy while the branch that actually sells the item has none.
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