Small-business finance
Inventory reorder point and stock coverage
Calculate a supplied reorder threshold, available inventory position and days of stock from matching unit records.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
reorder point = daily demand × lead days + supplied safety stock; inventory position = on hand + on order - backorders
Use a single item or consistent interchangeable units. Daily demand and lead time must both use calendar days or both use operating days. Safety stock is your supplied buffer, not a calculated service-level guarantee. Coverage excludes stock still on order and deducts entered backorders. Timing of incoming orders, new orders, demand spikes, variable lead times, expiry and supplier minimums are not modeled. Being below the point is a review signal, not an automatic purchase quantity.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Average units used or sold per day (units/day): Use the same item, accounting period and unit basis for matching records. Use your own records or a stated estimate; example figures are not benchmarks.
- Supplier lead time on the same day basis (days): Use the same item, accounting period and unit basis for matching records. Use your own records or a stated estimate; example figures are not benchmarks.
- Your chosen safety stock (units): Use the same item, accounting period and unit basis for matching records. Supply your own buffer policy; this tool does not infer a probability of avoiding stockouts.
- Usable units physically on hand (units): Use the same item, accounting period and unit basis for matching records. Use your own records or a stated estimate; example figures are not benchmarks.
- Units already ordered and expected (units): Use the same item, accounting period and unit basis for matching records. Use your own records or a stated estimate; example figures are not benchmarks.
- Units already committed but not filled (units): Use the same item, accounting period and unit basis for matching records. Use your own records or a stated estimate; example figures are not benchmarks.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Reorder point is 100.000 units for the illustrative inputs below.
Example inputs
- Average units used or sold per day: 10.00 units/day
- Supplier lead time on the same day basis: 7.00 days
- Your chosen safety stock: 30.00 units
- Usable units physically on hand: 100.00 units
- Units already ordered and expected: 20.00 units
- Units already committed but not filled: 10.00 units
- Reorder point
- 100.000 units
- Inventory position including orders and backorders
- 110.000 units
- Comparison with supplied reorder point
- Above the supplied reorder point
- Available on-hand stock coverage
- 9.000 days
- Expected usage during lead time
- 70.000 units
- Units below supplied reorder point
- 0.000 units
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Calculate a supplied reorder threshold, available inventory position and days of stock from matching unit records.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.