Reorder Point Calculator
When to place the order so you do not go out of stock in the lead time.
The calculation
safety stock = (worst daily sales − average daily sales) × lead time reorder point = (average daily sales × lead time) + safety stock days of cover = (stock on hand + inbound) ÷ average daily sales
When your available stock falls to the reorder point, the order needs to go out that day — not that week.
Why stock-outs cost more than they look
On Amazon, availability is a ranking input. A stock-out does not just cost the sales you would have made during it; it costs the position you have to earn back afterwards, and the advertising spend required to do that.
Which is why the conservative answer — order slightly early — is almost always cheaper than the optimised one.
What this leaves out
- Seasonality. If the next 21 days are not like the last 21, adjust the
average daily sales figure before you use it.
- Minimum order quantities and cash flow. The reorder point tells you when;
it does not tell you how much you can afford.
- Multi-node placement. Stock available in the wrong fulfilment centre is
not fully available.
This is the simple version.
The full model runs every cost layer across your whole catalogue, on live fee tables, inside SMEMinds Playbook.