![]() This is the point at which you need to order product to replenish your stock. The optimal reorder point will maximize the profit you can make from your stock and avoid surplus inventory in your warehouse. Optimal Reorder Point & Optimal Reorder Point Formula Repeat as necessary for each item in your inventory. With these three numbers in hand, it's as simple as plugging them into the formula above to determine that product's reorder point. Lead time can also be calculated for the product using a simple formula or by using a lead time calculator. Safety stock levels are also noted on this sheet. Download our free inventory tracking sheet to make your job even easier. ![]() If you don't you can look at inventory numbers and divide by the number of days between taking inventory. You can easily pull daily sales information from your POS system, online marketplace, or multichannel order management platform if you have any of these. Calculating the reorder point for a given product first requires that you determine a product's average daily sales, lead time, and amount of safety stock.
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