📋 Reorder Point Calculator
Calculate the reorder point (ROP) using average daily demand, lead time, and safety stock.
What Is the Reorder Point?
The reorder point (ROP) is the inventory level at which a new order should be placed to replenish stock before it runs out. The formula is: ROP = (Average Daily Demand × Lead Time) + Safety Stock.
Safety stock acts as a buffer against variability in demand or supply lead time. Setting the right ROP helps avoid stockouts while minimizing excess inventory carrying costs.
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