Reorder Point Calculator
Determine the critical inventory level to trigger a new purchase order.
Calculation Formula
The Reorder Point (ROP) ensures that inventory is ordered in time to cover demand during the period between placing the order and receiving the goods (Lead Time).
Formula Used:
ROP = (Average Daily Demand $\times$ Lead Time) + Safety Stock
The typical number of units sold or used per day.
The time (in days) between placing an order and receiving it.
Extra inventory buffer to guard against demand or lead time variability (Optional).
Calculated Reorder Point
The required Reorder Point (ROP) is:
0
Units
Calculation: (20 units/day $\times$ 7 days) + 50 units = 190 units