The stock level at which you should place a new order to avoid running out before the new stock arrives.
Reorder point is the "warning light" for your stock. When a product hits this level, it's time to order more — not when you run out. It accounts for how long your supplier takes to deliver and how fast you sell the product.
Reorder Point = (Average Daily Sales × Lead Time in Days) + Safety StockOrdering too late means stockouts — lost sales, unhappy customers, empty shelves. Ordering too early means cash tied up in inventory you don't need yet. The reorder point is the precise balance between both risks.
Upload your inventory data including stock levels and sales velocity. Ask "What are my reorder points for each product?" AskBiz calculates a reorder point for every SKU based on your actual sales rate and flags which products are already below threshold.
Export a CSV or Excel file from your POS, accounting software, or spreadsheet and upload it to AskBiz.
Type your question in plain English. Try: "What is my reorder point?" or "How to Calculate Reorder Point for Inventory"
AskBiz returns the calculation with a chart, KPI breakdown, and specific recommendations — in seconds.
A pharmacy uploads their stock data. AskBiz calculates that their paracetamol reorder point is 240 units (3 days sales × 4 day lead time + 50 unit safety stock). Current stock is 180 — below the threshold. AskBiz flags this as urgent.
Upload your CSV or Excel file and ask "How to Calculate Reorder Point for Inventory" — get the answer with a chart and recommendations in under 60 seconds.
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Safety stock is extra inventory held as a buffer against unexpected demand spikes or supplier delays. A higher safety stock raises your reorder point. AskBiz calculates safety stock based on the variability in your historical sales.
Longer lead times require higher reorder points. If your supplier takes 14 days to deliver and you sell 50 units per day, you need at least 700 units in stock before reordering. AskBiz adjusts reorder points automatically if you update lead time information.