Reorder Point Calculator
When to reorder a SKU, accounting for lead time, sales velocity and a safety-stock buffer.
About this tool
Reorder Point (ROP) = (daily sales × lead time days) + safety stock. Get this number wrong on a hero SKU and you stock out for weeks, killing PMax / Meta CBO momentum that takes months to rebuild. Compute ROP, safety stock from demand variability, and total inventory required.
Service level translates to stockout risk
- • 90% — stockout ~10% of cycles. Use for low-margin / commoditised SKUs only.
- • 95% — stockout ~5%. Industry default for ecommerce.
- • 97% — stockout ~3%. For important SKUs with strong ad spend.
- • 99% — stockout ~1%. Hero SKUs that anchor your paid campaigns.
Lead time honesty
The number one cause of stockouts isn't bad math — it's overly optimistic lead times. Use the 90th-percentile lead time you've historically experienced (not the supplier's promise), and add a conservative buffer if you're shipping from overseas.
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