Reorder point
Know when to reorder, with a buffer for uncertainty.
InventoryCompare uncommitted stock coverage with replenishment lead time at a steady daily demand rate.
Compare uncommitted stock coverage with replenishment lead time at a steady daily demand rate.
Steady demand only. Incoming receipts and safety-stock requirements are not included.
Committed stock is already reserved and excluded from available units. Compare the resulting coverage with your expected replenishment lead time. Any shortfall is the extra uncommitted stock needed to cover that lead time at the entered rate. Incoming orders, safety stock, and demand variability are not included.
This is a snapshot of uncommitted stock at an assumed daily demand rate. It helps reveal whether the current pool covers an entered replenishment lead time before new supply is considered.
A receipt due after depletion does not protect the gap simply because it is on order. Use dated inventory projection for changing demand and receipts. Separate quality holds and expiry restrictions from units that are genuinely available to fulfill demand.
Use consistent time units for demand and lead time. Seasonal demand, expiration dates, backorders, and uncertain receipts require more detailed planning.
Worked example: Reorder Point and Safety Stock: A Practical Example
No. This snapshot uses stock physically on hand, less commitments. Incoming orders may arrive after current stock is depleted and need a time-phased plan.
It is the difference between lead-time demand and available stock, floored at zero. It is not an automatic purchase recommendation or a safety-stock estimate.