# Reorder point

> A reorder point is the stock level that tells you to order more, set so the delivery lands before you run out.

- Source: https://storestandards.com/glossary/reorder-point/
- Updated: 2026-08-14
- Author: Priya Raghunathan, Founder, engineer, Store Standards

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Hit it, place the order. That is the whole rule.

## The arithmetic

Weekly sales, times [lead time](https://storestandards.com/glossary/lead-time/) in weeks, plus
[safety stock](https://storestandards.com/glossary/safety-stock/).

Sell 20 a week, two-week lead time, 30 units of buffer. Your reorder point is 70. When available stock drops to 70, the order goes out.

Use available rather than on hand, or you will count units that are already
promised to somebody. The difference is covered in
[available inventory](https://storestandards.com/glossary/available-inventory/).

## Review it four times a year

The number is built from two things that both move. Sales change with the
season. Lead times stretch when a supplier gets busy.

A reorder point set in January and still running in October is describing a
shop that no longer exists.

## Where it goes wrong

One reorder point for every line. Fast sellers run out and slow lines pile up,
because a rule that ignores how fast something sells is not a rule about
stock.

The other fault is a reorder point nobody sees. It sits in a spreadsheet
column and the order goes out when somebody notices a gap on the shelf, which
is usually a week after the number said so.

## Related terms

- [Safety stock](https://storestandards.com/glossary/safety-stock/): Safety stock is the extra you hold to cover the weeks when sales run high or a delivery runs late.
- [Lead time](https://storestandards.com/glossary/lead-time/): Lead time is how long it takes for stock to arrive after you place the order, measured from your side of the transaction.
- [Stockout](https://storestandards.com/glossary/stockout/): A stockout is running out of something a customer wanted to buy. The lost sale is usually the smallest part of the cost.