The reorder point is the stock level at which you order again: the demand during the supplier's lead time, plus a safety stock. Enter your daily demand and lead time below. You get the reorder point, the safety stock and the order-up-to level, with every step shown.
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Reorder point = daily demand × lead time + safety stock, rounded up to a whole unit.
The two tabs differ only in the safety stock:
Order up to = the reorder point before rounding + one review period of demand, rounded to a whole unit and at least one unit above the reorder point. When stock falls to the reorder point, order the difference between the order-up-to level and what you have and have on order.
These are the formulas Golden Inventory itself uses: the safety-days rule for the reorder level it suggests from recent sales, and the service-level rule for the levels its demand planning proposes.
A shop sells 12 LED bulbs a day. The supplier delivers 10 days after the order. The shop counts stock once a week (review period 7 days).
| Method | Safety stock | Reorder point | Order up to |
|---|---|---|---|
| Safety days: 7 | 12 × 7 = 84 | 204 | 288 |
| Service level: 95 %, σ = 4 | 1.65 × 4 × √17 = 27.21 | 148 | 231 |
With safety days the shop reorders at 204 bulbs. With a service level it reorders at 148: its daily sales swing by only about 4 bulbs, so a smaller buffer still gives 95 % cover — and 56 fewer bulbs sit on the shelf.
A reorder point helps only if somebody looks at it every day. In Golden Inventory you set a minimum (the reorder point) and a target (the order-up-to level) on each item. The Reorder screen then lists every item at or below its minimum with the quantity to order, and one click drafts the purchase orders, grouped by supplier.
With demand planning (Pro plan), the app proposes the minimum and the target for each item from your own sales history, with the service-level formula above, and tests them against the past before you accept them.
The stock level at which you place the next order. It covers the demand during the supplier's lead time plus a safety stock, so the new goods arrive before the shelf is empty.
Take the units sold per day over the last 30 to 90 days. The average is the daily demand; the standard deviation (STDEV in Excel) is σ. Use days you were open, and leave out days you had no stock.
Use safety days when you know your average sales but not how much they vary. Use a service level when you can measure how much daily sales swing; it puts the buffer where the demand is uncertain.
Stock is counted in whole units, and a point that is too low is a stock-out. Rounding up is the safe side.
Yes. Our free inventory and invoice template has a minimum quantity column and a REORDER flag — type the reorder point there.
Minimum and target on every item, and draft purchase orders when stock falls. Free plan, no card.