Free Tool

Reorder Point Calculator

Calculate the exact stock level at which you should place a new order. Enter your average daily demand, supplier lead time, and safety stock to get your reorder point — free, no signup required.

How to Calculate Your Reorder Point

Enter your average daily demand, supplier lead time, and safety stock buffer. The calculator returns your reorder point in units — the on-hand quantity at which you should trigger a new purchase order.

Reorder Point Formula

The reorder point formula is:

Reorder Point = (Average Daily Demand × Lead Time) + Safety Stock
Input What it means Example
Avg Daily Demand Units sold per day, averaged over 30–90 days 15 units/day
Lead Time Days from order to delivery (include transit + processing) 14 days
Safety Stock Buffer units for demand spikes or late deliveries 30 units
Reorder Point (15 × 14) + 30 240 units

Why Reorder Point Matters for Shopify Merchants

Setting the wrong reorder point is one of the most common causes of stockouts and overstock. Too low, and you run out before new stock arrives. Too high, and you tie up cash in inventory you don't need yet.

Lead time is the single biggest variable. A 7-day error in your estimated lead time shifts the reorder point by 7 × your daily demand — which could be hundreds of units on a fast-moving SKU.

How Forthcast Automates Reorder Points

Forthcast calculates the reorder point for every SKU in your Shopify store automatically, using your actual demand history, seasonality patterns, and supplier lead times — then alerts you when stock is approaching the threshold. No spreadsheets required.

Start your free 14-day trial and let Forthcast manage reorder points across your entire catalog, with demand forecasts up to 6 months ahead.

Frequently Asked Questions

What is a reorder point?
The reorder point (ROP) is the on-hand stock level at which you should place a new purchase order, so that new stock arrives just as you're running low. It equals demand during lead time plus your safety stock buffer.
How do I find my average daily demand?
Divide total units sold in a period by the number of days. For example, 450 units sold in 30 days = 15 units/day. Use a longer window (60–90 days) to smooth out outliers, and recalculate after significant demand shifts like promotions.
What should my safety stock be?
A common starting point is 1.5× your average daily demand multiplied by your lead time variability. Forthcast calculates safety stock automatically from your actual demand variance and service-level target. For a quick estimate, use 20–30% of your demand-during-lead-time figure.
Is this reorder point calculator free?
Yes. The reorder point calculator on Forthcast is completely free — no signup required, no data stored.

Powered by Forthsuite : the supply chain OS for Shopify merchants.