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Reorder Point Calculator

Set a replenishment trigger around lead time and your chosen buffer.

This reorder point calculator works out the units needed to cover demand while you wait for replenishment, plus the buffer you choose. It gives you a clear trigger to compare with a consistently defined inventory position.

The result does not set the size of the next purchase order. Order quantity also depends on buying rules, minimums, available cash and the stock you want after receipt. Use Weeks of Supply to inspect current cover and the Inventory Cash Planner to check payment timing. The Inventory Planning Calculator adds context for reviewing the broader stock position.

Unit demand · Lead time in days · User-chosen buffer

01

Demand and lead time

Use a consistent scope and cost basis for every figure.

Labels monetary values. Does not convert them.

The example is illustrative. Replace it with your own figures; results update as you type. Your entries stay in this page until you choose to copy them.

Need help finding your figures in Shopify?

Copy an input checklist for Sidekick. Store reports may not contain every cost or scenario assumption; verify the source and mark missing figures rather than guessing.

Expected new demand during replenishment lead time, excluding commitments already deducted below.
Order-to-available lead time, including receiving delays where relevant.
02

User-chosen buffer

User-chosen reserve; not statistically optimized safety stock.
03

Inventory position

Physical units before subtracting commitments.
Open supplier orders within the same stock scope. Arrival reliability is not modeled.
Deduct once from on-hand plus on-order. May exceed supply, producing a negative inventory position.

Result review

Want to pressure-test the inventory decision?

Turnover and reorder points are only part of the decision. We can help you look at how demand, inventory commitments and cash requirements fit together.

Review My Inventory PositionFree 25-minute review. You decide what to share.

How this tool works

How the reorder point is calculated

Multiply daily unit demand by replenishment lead time in days. Add the buffer units you choose to obtain the reorder point. If the buffer is entered in days, convert those days to units using the same daily demand rate. A fractional unit threshold is rounded up where whole items are required.

Compare the trigger with an inventory position that consistently accounts for stock on hand, confirmed incoming stock and outstanding commitments. Do not count the same reservation or backorder twice. The buffer is an explicit planning choice; this calculation does not estimate a statistical service level or an optimal safety stock.

Reorder point = daily unit demand × lead time in days + chosen buffer units, rounded up to whole units.

A trigger for a three-week lead time

At 10 units of daily demand and a 21-day lead time, expected lead-time demand is 210 units. Add a chosen buffer of 70 units for a reorder point of 280. Reaching that inventory position is a signal to review replenishment, not an instruction to order 280 units.

Your full calculation

MeasureResult · USD
Reorder point, rounded upInventory position is above the reorder trigger.380
Expected demand during lead time280
User-chosen buffer units100
Inventory positionOn hand + confirmed on order − committed/backordered units.400
Position above or below trigger20
On-hand units250
Confirmed on-order units200
Committed or backordered units50

Questions & answers

Understanding your result

How is ROP calculated?

Multiply average daily unit demand by lead time in days, then add the buffer units selected. For example, 8 units per day over 15 days plus a 40-unit buffer gives a reorder point of 160 units.

Is reorder point the same as order quantity?

No. Reorder point is the inventory threshold that triggers a replenishment decision. Order quantity is how much you buy. The latter depends on your target position, existing pipeline, supplier minimums, cash and other buying constraints.

How should I choose safety stock for this calculator?

Enter a buffer based on the demand and lead-time uncertainty you want to allow for. The calculator uses your chosen units or days; it does not derive a service-level-based safety stock from statistical demand and lead-time variation.

Which stock figure should I compare with the trigger?

Use a consistent inventory position, usually stock on hand plus confirmed on-order units less unfilled commitments. Check receipt timing and avoid subtracting commitments twice. Late incoming stock may leave a gap even when the total pipeline looks sufficient.