The reorder point formula
- Lead-time demand = Avg daily sales × Lead time
- Safety stock = Avg daily sales × Supplier delay buffer (or manual override)
- Reorder point (ROP) = Lead-time demand + Safety stock
- Reorder quantity = Avg daily sales × (Lead time + Target days of cover)
- Days of stock left = Current stock / Avg daily sales
For SKUs with volatile demand, consider a statistical safety stock (Z × σ × √lead-time) with an inventory platform.