# Reorder point calculator

> Free reorder point calculator. Get reorder point and safety stock by two methods, plus the economic order quantity (EOQ) and orders per year.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/reorder-point-calculator

Know when to reorder and how much: reorder point and safety stock by two methods, plus the order size that keeps ordering and holding costs lowest.

## What it calculates

The reorder point is the stock level that should trigger a new purchase order: what you sell during the supplier's lead time, plus safety stock for bad days. Safety stock can be set by a simple worst-case rule or statistically from how much demand and lead time vary. EOQ (economic order quantity) balances the cost of placing orders against the cost of holding stock.

## Formula

```
Reorder point = Daily sales × lead time + safety stock
Safety (max method) = Peak daily × longest lead − daily × lead
Safety (statistical) = z × √(lead × σ_demand² + daily² × σ_lead²)
EOQ = √(2 × yearly demand × order cost ÷ (unit cost × holding %))
```

## Worked example

Inputs:
- Average units sold per day: 20
- Supplier lead time: 10
- Peak units per day: 30
- Longest lead time: 14
- Daily demand variation (σ): 6
- Lead time variation (σ): 2
- Service level: 95%
- Cost per purchase order: USD 60
- Unit cost: USD 9
- Holding cost per year: 25%

Results:
- Reorder point (statistical): 273
- Safety stock (statistical): 73
- Reorder point (max method): 420
- Safety stock (max method): 220
- Order quantity (EOQ): 624
- Orders per year: 11.7

## What changes the result

Supplier lead time at five values; every other input as in the example.

| Supplier lead time | Reorder point (statistical) | Safety stock (statistical) |
| --- | --- | --- |
| 5 | 169 | 69 |
| 8 | 231 | 71 |
| 10 (example) | 273 | 73 |
| 13 | 335 | 75 |
| 15 | 376 | 76 |

## How to read the result

The statistical method usually needs less safety stock than the max method for the same protection.
A higher service level means fewer stockouts and more cash tied up in stock.
EOQ is a starting point: supplier minimums and cash can override it.

## Questions

**How do I calculate a reorder point?**
Daily sales × supplier lead time in days, plus safety stock.

**How much safety stock do I need?**
Enough to cover demand and lead time being worse than average. The statistical method sizes it for the service level you choose.

**What is EOQ?**
Economic order quantity: the order size where the cost of placing orders and the cost of holding stock are lowest together.

**Do you store what I enter?**
No. The calculation runs in your browser and nothing is sent to Analify.

## Use your real numbers

Analify reads daily units sold and inventory levels from Shopify and product costs, so your sales rate comes from real orders. Analify reads 4 of these 10 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/reorder-point-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools