Glossary · Planning
What is Reorder point?
The reorder point is the inventory level at which you place a new order, equal to demand during the lead time plus safety stock.
When your inventory position falls to the reorder point, a new order should be placed so that stock arrives before you run out. Because demand and lead times change, a fixed number goes stale; it should be recalculated as sales patterns shift.
Formula
Reorder point = (average daily demand × lead time) + safety stock
Example
Selling 20 a day with a 21-day lead time and 145 units of safety stock gives a reorder point of 565 units.
How Stokrio handles it
Stokrio recomputes the reorder point from the forecast and flags products at or below it, so seasonal products are not held to a single yearly number.
Calculate it
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