Free tool
Reorder point calculator.
Find the stock level at which it is time to place your next order. Type in your numbers and the answer updates as you go. Nothing you type is sent anywhere or saved.
The formula in plain words.
Reorder point = average daily sales × lead time in days + safety stock
While you wait for a delivery, you keep selling. Daily sales times the lead time tells you how much stock you will sell before the new order arrives. Safety stock is a cushion on top, in case sales run faster or the delivery runs late.
When the units you have on hand and on order fall to the reorder point, place the order. Order any later and you are likely to run out before it lands.
A worked example
You sell 12 units a day and your supplier takes 14 days. That is 12 × 14 = 168 units sold while you wait. Add 40 units of safety stock and the reorder point is 208 units.
Good to know.
This is the standard textbook formula with the numbers you give it. Use an average that reflects how you really sell, and check the result against your own judgement before you order. Count units already on order together with units on hand, so you do not order the same stock twice.
Want these numbers worked out from your own Shopify sales? Wharfly is in the Shopify App Store.