Reorder level calculator

Enter how much of an item you sell in a day, how many days your vendor takes to deliver, and the safety stock you want. The calculator gives the stock level at which to place the next order.

Sold while you wait for delivery
150
Safety stock
50
Reorder when stock falls to
200

The formula

Reorder level = average daily sales × delivery time in days + safety stock. The first part is what you will sell while the order is on its way. The second part is your cushion for a late truck or an unusually good week.

An example

A distributor sells 25 cartons of an item a day. The vendor delivers in 6 days, and the distributor wants 2 days of sales as safety stock. In 6 days 150 cartons will be sold, and the safety stock is 50, so the order goes out when stock falls to 200 cartons.

Why it matters

Without a reorder level, buying is done by looking at the shelf. Fast items run out and customers go elsewhere, while slow items are bought again because they look low. A level on each item turns buying into a list you can check in a minute, and frees the money that sits in stock you did not need.

Questions people ask

What is a reorder level?

The stock quantity at which you place a new purchase order for an item, so that the new stock arrives before the old stock runs out. It is also called the reorder point.

How is the reorder level calculated?

Multiply the average quantity you sell in a day by the number of days your vendor takes to deliver, then add your safety stock. Selling 25 a day with 6 days to deliver and a safety stock of 50 gives a reorder level of 200.

How much safety stock should I keep?

Enough to cover a late delivery or a busy week. A simple rule is the stock you sell in the number of days a delivery is usually late. Keep more for items that customers will not wait for, and less for slow or costly ones.

Is the reorder level the quantity I should order?

No. The reorder level tells you when to order. How much to order depends on pack sizes, the vendor’s minimum, how often you want to order and how much money you can keep in stock.

How often should I review reorder levels?

Before each season and whenever sales or delivery times change noticeably. A level set for Diwali sales will hold too much stock in the months after.

Read next

More free tools

Let the reorder list write itself.

Set a reorder level on each item in EaseDesk, and it lists what has fallen below it, with the last vendor and rate, ready to turn into purchase orders. Try it free for 14 days with up to 5 users.

  • ₹0 to start: 14-day free trial
  • ₹490 a month for the first user, billed yearly
  • ₹290 a month for each additional user
  • ₹0 for your CA’s login

Prices before GST. Nothing is charged unless you choose to subscribe.