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A reorder point is the stock level at which you should place a new order. In a min/max approach, it acts as the trigger for replenishment, helping you maintain healthy stock levels without over- or under-ordering. Ordering too early can lead to excess stock, while ordering too late increases the risk of stockouts.
For more information on reorder points and stock levels, read our blog on service levels in inventory management.
Service level metrics blogReorder point = (Average consumption x lead time) + safety stock
This calculation estimates how much stock you need to cover expected demand during your lead time, with safety stock added as a buffer against uncertainty.
But demand and supply rarely stay the same. In practice, reorder points should adapt as demand, lead times, service level targets and other factors change. EazyStock dynamically adjusts reorder points and safety stock as conditions change, helping you maintain availability without carrying unnecessary stock.
Book a demo to see how EazyStock optimises replenishment.
Reorder point planning blog
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