Reorder Point Calculator

✖Lead Time Demand is the Average number of orders requested during the Lead Time.ⓘ Lead Time Demand [DL]			+10% -10%
✖Safety Stock is the extra stock that is always maintained to mitigate any future risks arising due to stock-outs.ⓘ Safety Stock [S]			+10% -10%

✖The Reorder Point is the point at which the inventory is ordered for replenishment.ⓘ Reorder Point [RP]

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Reorder Point Solution

STEP 0: Pre-Calculation Summary

Formula Used

Reorder Point = Lead Time Demand+Safety Stock
RP = DL+S
This formula uses 3 Variables

Variables Used

Reorder Point - The Reorder Point is the point at which the inventory is ordered for replenishment.
Lead Time Demand - Lead Time Demand is the Average number of orders requested during the Lead Time.
Safety Stock - Safety Stock is the extra stock that is always maintained to mitigate any future risks arising due to stock-outs.

STEP 1: Convert Input(s) to Base Unit

Lead Time Demand: 1875 --> No Conversion Required
Safety Stock: 2560 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

RP = DL+S --> 1875+2560

Evaluating ... ...

RP = 4435

STEP 3: Convert Result to Output's Unit

4435 --> No Conversion Required

FINAL ANSWER

4435 <-- Reorder Point

(Calculation completed in 00.004 seconds)

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Credits

Created by Suman Ray Pramanik

Indian Institute of Technology (IIT), Kanpur

Suman Ray Pramanik has created this Calculator and 50+ more calculators!

Verified by Akshada Kulkarni

National Institute of Information Technology (NIIT), Neemrana

Akshada Kulkarni has verified this Calculator and 900+ more calculators!

< Industrial Parameters Calculators

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LaTeX Go Traffic Intensity = Mean Arrival Rate/Mean Service Rate

Variance

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Reorder Point

LaTeX Go Reorder Point = Lead Time Demand+Safety Stock

Reorder Point Formula

LaTeX Go

Reorder Point = Lead Time Demand+Safety Stock
RP = DL+S

What is Reorder Point?

The Reorder Point is the point at which the inventory is ordered for replenishment. It is a minimum amount of an item that a firm holds in stock, such that, when a stock falls to this amount, the item must be reordered.

How to Calculate Reorder Point?

Reorder Point calculator uses Reorder Point = Lead Time Demand+Safety Stock to calculate the Reorder Point, The Reorder Point is the level of inventory that triggers an action to replenish that particular inventory stock. Reorder Point is denoted by RP symbol.

How to calculate Reorder Point using this online calculator? To use this online calculator for Reorder Point, enter Lead Time Demand (DL) & Safety Stock (S) and hit the calculate button. Here is how the Reorder Point calculation can be explained with given input values -> 4435 = 1875+2560.

FAQ

What is Reorder Point?

The Reorder Point is the level of inventory that triggers an action to replenish that particular inventory stock and is represented as RP = DL+S or Reorder Point = Lead Time Demand+Safety Stock. Lead Time Demand is the Average number of orders requested during the Lead Time & Safety Stock is the extra stock that is always maintained to mitigate any future risks arising due to stock-outs.

How to calculate Reorder Point?

The Reorder Point is the level of inventory that triggers an action to replenish that particular inventory stock is calculated using Reorder Point = Lead Time Demand+Safety Stock. To calculate Reorder Point, you need Lead Time Demand (DL) & Safety Stock (S). With our tool, you need to enter the respective value for Lead Time Demand & Safety Stock and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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