Stock reorder point calculator for shops

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Reorder point = average daily sales × lead time + safety stock. Sell 12 a day, wait 5 days for delivery and keep 80 as a buffer, and you reorder when stock falls to 140. Enter your figures below to get the reorder point, safety stock, days of stock left and how much to order, for one item or your whole list.

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Stock falls to the reorder point and an order is placed

1. Item ki bikri aur supplier ka time

E.g. 360 sold in the last 30 days = 12 a day.
Days from placing the order to goods on your shelf.

2. Safety stock (buffer)

How do you want to set it?
Sales during lead time
60 units
Safety stock
80 units
Reorder point
140 units
Current stock lasts
12.5 days
Suggested order
170 units

Jab stock 140 units tak aaye, order de do: reorder when stock falls to 140 units. You have 10 units above it.

3. Many items at once

ItemDaily salesLead daysSafetyStockReorder atStatusRemove
42Order now
90OK, 4.6 days
27Order now

How to use it

  1. Find average daily sales. Take how many units sold in the last 30 days and divide by 30. Use a normal month, not a festival rush, unless you are planning for one.
  2. Enter the lead time. The days between placing an order and the goods being on your shelf, including the supplier's delivery day.
  3. Set a safety stock. From your busiest day and slowest delivery, as a few extra days of sales, or as units you already use. It covers sales spikes and late deliveries.
  4. Read the reorder point. Reorder when stock falls to this number. Add current stock to see how many days it lasts and how much to order.
  5. Do it for many items. Fill the table for your fast movers, or download the Excel reorder sheet where rows to order turn red.

Reorder point formulas

You wantFormulaExample
Reorder pointDaily sales × lead time + safety stock12 × 5 + 80 = 140
Safety stock (max-avg)Max daily × max lead − avg daily × avg lead20 × 7 − 12 × 5 = 80
Safety stock (days)Daily sales × extra days12 × 3 = 36
Days of stock leftCurrent stock ÷ daily sales150 ÷ 12 = 12.5 days
Order quantityDaily × (lead + cover days) + safety − stock12 × 20 + 80 − 150 = 170

More in reorder level and safety stock for a retail shop, ABC analysis and inventory turnover; how long stock ties up cash is the cash conversion cycle. To count stock, see stock audit by barcode scan, the inventory and barcode features and the free stock register Excel.

Questions

What is the reorder point formula?

Reorder point = average daily sales × lead time in days + safety stock. If you sell 12 a day, delivery takes 5 days and you keep 80 as safety stock, reorder when stock reaches 12 × 5 + 80 = 140 units.

How do I calculate safety stock?

A simple shop method: (most sold in one day × longest delivery time) − (average daily sales × average delivery time). With a best day of 20, a longest delivery of 7 days, 12 a day on average and 5 days usually, safety stock is 140 − 60 = 80 units. Or keep a few extra days of sales, such as 3 days × 12 = 36.

What is lead time?

The time from placing an order to the goods being ready to sell in your shop. Count working days the supplier really takes, plus a day to receive and price the goods.

How much should I order?

Enough to last until your next order. The tool suggests: daily sales × (lead time + days the order should last) + safety stock − current stock. Adjust for pack sizes, supplier minimums and schemes.

Should every item have the same safety stock?

No. Fast movers and items customers will not wait for (milk, bread, popular phone chargers) need more. Slow, costly items need little, because stock sitting on the shelf ties up cash.

How often should I recalculate the reorder point?

Once a month, and before festivals and season changes, because daily sales and supplier lead times change. A wrong old number causes both stock-outs and overstock.

Related

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