Inventory Tool 15

Reorder
Trigger
Calculator

Calculate reorder point (ROP), safety stock, and economic order quantity (EOQ) to eliminate both stockouts and overstock. Know exactly when to reorder and how much.

1Demand & Lead Time

Avg Daily Sales (units)

Demand Variability (std dev)

Daily demand standard deviation

Service Level (%)

95% = z-score 1.645

Avg Lead Time (days)

Supplier to warehouse

Lead Time Variability (days)

Standard deviation of lead time

Current Inventory (units)

2Cost Inputs for EOQ

Unit Cost ($)

Order Cost ($/order)

Admin, processing, receiving

Holding Cost (% / yr)

Storage + capital cost of stock

Annual Demand (units)

Reorder Point (units)

Safety Stock (units)

EOQ (units)

Reorder Point - units - place order when stock hits this

ROP Calculation

Avg daily demand -

× Avg lead time (days) -

= Demand during lead time -

+ Safety stock -

Reorder Point (ROP) -

Safety Stock Calculation

Service level z-score -

Demand std dev (daily) -

Lead time (days) -

Lead time variability (std dev) -

Safety Stock (SS) -

EOQ & Ordering

Economic Order Qty (EOQ) -

Orders per year -

Days between orders -

Annual ordering cost ($) -

Annual holding cost ($) -

Reorder trigger.When to place the next order.

Reorder trigger.
When to place the next order.