Logistics & production · Calculator companion · By K Imports
Inventory reorder point: practical guide
This guide explains how to use the Count.ie inventory reorder point. Set a stock trigger using demand, lead time, safety stock and commitments. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Inventory reorder point calculatorWhat to prepare
- Gather order history, item dimensions, weights and supplier lead times.
- Identify the same units and planning period across stock, demand and capacity inputs.
- Check which freight, storage, import or production costs the model includes.
Understand the inputs
The calculation method
Reorder point = daily demand × lead time + safety stock. Inventory position = on hand + on order − allocated.
Worked example
Illustrative inputs and their result.
Example inputs
- Average daily unit demand
- 40
- Replenishment lead time (days)
- 10
- Safety stock units
- 100
- Units on hand
- 420
- Units already ordered
- 80
- Units allocated to customers
- 60
Calculated example result
- Reorder Point
- 500
- Inventory Position
- 440
- Reorder Triggered
- Yes
How to interpret the result
A capacity, inventory or landed-cost estimate is not a guarantee of service availability. Variability in demand, lead time, packing and customs treatment can change the operating result.
Keep the service requirement fixed while testing demand, lead time or shipment size. Check practical constraints such as handling, access and supplier minimum quantities separately.
Common mistakes to avoid
- Do not mix usable capacity with nominal capacity.
- Keep net goods weight separate from packaged or shipping weight.
- Do not treat a supplier's usual lead time as a guaranteed maximum.
Assumptions and sources
This triggers ordering but does not set the order quantity. Lead time and daily demand must use a consistent calendar or working-day basis.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.