Reorder Point Formula

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The Reorder Point is the point at which the inventory is ordered for replenishment. Check FAQs
RP=DL+S
RP - Reorder Point?DL - Lead Time Demand?S - Safety Stock?

Reorder Point Example

With values
With units
Only example

Here is how the Reorder Point equation looks like with Values.

Here is how the Reorder Point equation looks like with Units.

Here is how the Reorder Point equation looks like.

4435Edit=1875Edit+2560Edit
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Reorder Point Solution

Follow our step by step solution on how to calculate Reorder Point?

FIRST Step Consider the formula
RP=DL+S
Next Step Substitute values of Variables
RP=1875+2560
Next Step Prepare to Evaluate
RP=1875+2560
LAST Step Evaluate
RP=4435

Reorder Point Formula Elements

Variables
Reorder Point
The Reorder Point is the point at which the inventory is ordered for replenishment.
Symbol: RP
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Lead Time Demand
Lead Time Demand is the Average number of orders requested during the Lead Time.
Symbol: DL
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Safety Stock
Safety Stock is the extra stock that is always maintained to mitigate any future risks arising due to stock-outs.
Symbol: S
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

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How to Evaluate Reorder Point?

Reorder Point evaluator uses Reorder Point = Lead Time Demand+Safety Stock to evaluate 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 evaluate Reorder Point using this online evaluator? To use this online evaluator for Reorder Point, enter Lead Time Demand (DL) & Safety Stock (S) and hit the calculate button.

FAQs on Reorder Point

What is the formula to find Reorder Point?
The formula of Reorder Point is expressed as Reorder Point = Lead Time Demand+Safety Stock. Here is an example- 4435 = 1875+2560.
How to calculate Reorder Point?
With Lead Time Demand (DL) & Safety Stock (S) we can find Reorder Point using the formula - Reorder Point = Lead Time Demand+Safety Stock.
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