The working behind the answer
How to use this calculator
Enter demand and lead time in the same day convention: if one uses working days, the other should too. Safety stock is your chosen buffer. The result is rounded up to a whole unit to avoid understating the arithmetic threshold.
The formula
Estimate a reorder point
Reorder point = average daily demand × lead time + safety stock, rounded up
A worked example
At 10 units of daily demand and a 5-day lead time, expected demand before delivery is 50 units. Adding 20 units of safety stock gives a reorder point of 70 units.
Good to know
Assumes constant demand and lead time. Compare the result with inventory position, including expected receipts and outstanding commitments, rather than looking only at shelf stock. The tool does not estimate a service level, safety buffer or order quantity.
Common questions
Does the result tell me how many units to order?
No. It is a threshold for considering replenishment; order quantity is a separate decision.
Does this predict demand?
No. It uses the average daily demand you enter without forecasting seasonal or random variation.