Inventory trigger worksheet

Reorder point calculator

The reorder point equals expected demand during lead time plus the safety stock you choose.

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How to use it

A short, reviewable workflow

  1. 01

    Enter average units consumed per day.

  2. 02

    Enter average replenishment lead time in matching calendar or working days.

  3. 03

    Add an independently chosen safety-stock quantity.

Useful for

Common use cases

  • Setting min/max parameters
  • Reviewing reorder alerts
  • Documenting a simple replenishment rule

Important boundary

What this result cannot decide

A reorder point can fail if inventory records, demand, lead time, open-order data, or the chosen safety stock are wrong.

Model notes

Assumptions and limitations

Assumptions

  • Daily demand and lead-time units are aligned.
  • Open orders and inventory accuracy are handled outside the formula.
  • Safety stock is supplied by the user.

Limitations

  • Does not derive service-level safety stock.
  • Demand and lead-time variability are not directly modeled.
  • Order quantity is not calculated.

Questions

Frequently asked

Is reorder point the same as order quantity?

No. It is the inventory-position trigger for ordering; EOQ or another policy can determine quantity.

Should I use calendar days?

Use the same basis for demand and lead time. If lead time uses working days, daily demand must too.