How to set a reorder point (with examples)
A step-by-step guide to calculating reorder points so you reorder before you run out — without overstocking.
Updated 15 October 2026
The formula
Reorder point = average daily usage × lead time in days + safety stock.
Example
You use 20 units a day, your supplier takes 10 days and you keep 60 units of safety stock. Reorder point = 20 × 10 + 60 = 260 units.
Getting the inputs right
Use real usage from the last 60–90 days, not a guess. Measure actual delivery times, not what the supplier promises.
Reorder points for products you make
Set reorder points on raw materials and a 'reproduction point' on finished goods and sub-assemblies, so you know when to build more as well as when to buy.
Try it with your own numbers:
Reorder point calculatorTrack parts, builds and stock in one place
Stoccly keeps BOMs, production and reorder points in sync for small makers.
Start free trial