Calculate when to reorder inventory for each SKU based on daily demand, lead time, and safety stock levels.
ROP = Reorder Point — the inventory level that triggers a new order
Avg Daily Sales = Average number of units sold per day
Lead Time Days = Number of days between placing and receiving an order
Safety Stock = Extra buffer stock to protect against variability
| SKU Name | Avg Daily Sales | Lead Time (Days) | Safety Stock | Current Stock | |
|---|---|---|---|---|---|
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A reorder point (ROP) is the inventory level at which a new order should be placed to replenish stock before it runs out. It accounts for average daily sales, supplier lead time, and safety stock to ensure continuous availability.
The reorder point is calculated using the formula: ROP = (Average Daily Sales × Lead Time Days) + Safety Stock. This ensures you place orders early enough to receive new stock before your current inventory is depleted.
Safety stock is extra inventory kept on hand to protect against unexpected demand spikes or supplier delays. Without safety stock, any deviation from average demand or lead time could result in a stockout.
Safety stock depends on demand variability, lead time variability, and your desired service level. A common approach is to use the safety stock formula: Z-score × standard deviation of demand × √(lead time). Our Safety Stock Calculator can help you determine the optimal level.
Yes! This calculator supports multi-SKU input. Add as many products as you need, enter their individual demand and lead time data, and get reorder points for all of them simultaneously.