Reorder Point Calculator

Determine the critical inventory level to trigger a new purchase order.

Calculation Formula

The Reorder Point (ROP) ensures that inventory is ordered in time to cover demand during the period between placing the order and receiving the goods (Lead Time).

Formula Used:

ROP = (Average Daily Demand $\times$ Lead Time) + Safety Stock

1. Average Daily Demand (Units)

The typical number of units sold or used per day.

2. Lead Time (Days)

The time (in days) between placing an order and receiving it.

3. Safety Stock (Units)

Extra inventory buffer to guard against demand or lead time variability (Optional).

Calculated Reorder Point

The required Reorder Point (ROP) is:

Units

Calculation: (20 units/day $\times$ 7 days) + 50 units = 190 units