What is Reorder Point?
(Sales * Lead) + Safety.
How it Works
Formula.
Step-by-Step Guide
- Sales – Daily avg.
- Lead – Days to ship.
- Safety – Buffer stock.
- ROP – Trigger level.
Example
Input: 10, 7, 20
Result: 90 Units
FAQ
Lead time?
Supplier processing + shipping.
Conclusion
Automate this to avoid stockouts.