MarginKoala

When should I reorder to avoid a stockout?

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Numbers to enter
Reorder point = expected demand during replenishment lead time + the safety stock you choose to hold. No supplier lead time or safety buffer is pre-filled.
units/day

Use a representative daily unit demand for the same SKU and period basis.

days

Use the lead time you want this reorder point to cover, measured consistently from ordering to stock being available to sell.

units

Your chosen buffer for demand and lead-time uncertainty. MarginKoala does not invent a safety-stock target.

Koala's Calculated Result
The stock position at which the entered lead-time demand plus safety stock is reached.

Add daily demand and replenishment lead time. Add safety stock if you want a buffer above expected lead-time demand.

MarginKoalaKoala's Professional Opinion

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Frequently asked questions

What is a reorder point?

In this calculator, reorder point = average daily demand × supplier lead-time days + safety stock. It is the inventory trigger implied by those three inputs; it is not a guarantee that replenishment will arrive before a stockout.

Reorder Point

What is safety stock?

Safety stock is an inventory buffer entered on top of expected lead-time demand. MarginKoala does not assume a standard percentage or number of days. Use a buffer supported by the variability, service objective and replenishment risk you are actually modelling.

Reorder Point

How are lead times chosen?

Use a lead-time input that matches the scenario being planned — for example a representative observed lead time or a deliberately conservative scenario. Do not mix a best-case supplier quote with demand data from a different operating basis.

Reorder Point

When do I update the reorder point?

Recalculate when average demand, lead time or the chosen safety-stock buffer changes enough to affect the purchasing decision. There is no universal monthly or contract-renewal cadence.

Reorder Point

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.