Know exactly when to reorder using your lead time, daily sales, and safety stock.
Your numbers
A buffer for demand spikes or supplier delays.
Reorder point
0
units in stock, reorder now
Lead time demand0 units
Safety stock0 units
How the reorder point works
Your reorder point is the stock level at which you should place a new order so you do not run out before it arrives. It equals your lead time demand (average daily sales multiplied by lead time in days) plus your safety stock buffer.
Safety stock protects you from two risks: a sudden spike in sales, or a supplier who ships late. Even a small buffer prevents the stockouts that cost you sales and, on Amazon, hurt your rankings. Recalculate whenever your sales rate or supplier lead time changes.
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