Reorder Point
When your on-hand stock drops to the reorder point, it is time to place an order.
Key takeaway: When your on-hand stock drops to the reorder point, it is time to place an order.
When your on-hand stock drops to this number, it is time to place an order. The reorder point is calculated from your average daily sales rate, your lead time, and a safety buffer. By the time your new stock arrives, you should not have run out.
How Forthcast calculates the reorder point
The standard reorder point formula is:
Reorder Point = (Average Daily Demand × Lead Time in Days) + Safety Stock
Average daily demand comes from your Shopify order history (filtered for wholesale and subscription orders). Lead time is set in Settings → Lead Time. Safety stock is sized from your service level — see the Safety Stock page.
Lead time has the biggest influence on this number, so make sure it is set correctly in Settings. A 7-day error in lead time can shift the reorder point by hundreds of units on a fast-moving SKU.
Frequently asked questions
What is Reorder Point in Forthcast?
When your on-hand stock drops to the reorder point, it is time to place an order.
Related glossary terms
More in Replenishment
Reorder Point — live in Forthcast
Open the Replenishment report inside Forthcast to see your live reorder list — ranked by revenue at risk.