Inventory Reorder Point Calculator
Calculate when to reorder inventory using lead time demand, safety stock, and EOQ — never stockout or overstock again.
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How this calculator works
The reorder point (ROP) is the inventory level that triggers a new purchase order. It accounts for the demand during lead time plus safety stock buffer. The Economic Order Quantity (EOQ) tells you the optimal order size to minimise total inventory costs (ordering cost + holding cost).
ROP = (Daily demand × Lead time) + Safety stock | Safety stock = Safety days × Daily demand | EOQ = √(2 × Annual demand × Order cost ÷ Holding cost per unit)
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Stockouts cost more than you think
Lost sales, expedited shipping, and customer churn from stockouts cost far more than slightly higher safety stock.
EOQ balances two costs
Too few orders = high holding cost. Too many orders = high order processing cost. EOQ finds the sweet spot.
Review after demand spikes
Adjust safety stock after seasonal spikes, viral moments, or new partnerships — use updated demand data, not historical averages.
Frequently Asked Questions
Lost sales, expedited shipping, and customer churn from stockouts cost far more than slightly higher safety stock.
Too few orders = high holding cost. Too many orders = high order processing cost. EOQ finds the sweet spot.
Adjust safety stock after seasonal spikes, viral moments, or new partnerships — use updated demand data, not historical averages.