Reorder point and safety stock
When to reorder a product and how many, so you never run out.
How it works
Reorder point = daily sales × (lead time + safety days). Economic order quantity = √(2 × yearly demand × order cost / holding cost).
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Sales per day25
- Lead time (days)7
- Safety stock (days)3
- Cost per order60
- Holding cost per unit per year2.5
you get:
- Reorder when stock reaches250 units
- Safety stock75
- Economic order quantity662
- Orders per year13.8
Frequently asked questions
How does the “Reorder point and safety stock” tool work?
Reorder point = daily sales × (lead time + safety days). Economic order quantity = √(2 × yearly demand × order cost / holding cost).
What do I need to enter?
Just fill in: sales per day, lead time, safety stock, cost per order, holding cost per unit per year. The result updates as you type.
Can you give an example?
Sales per day: 25; Lead time (days): 7; Safety stock (days): 3; Cost per order: 60; Holding cost per unit per year: 2.5 → Reorder when stock reaches: 250 units; Safety stock: 75.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.