Inventory Management
Reorder Point
The inventory level at which you should place a new purchase order to avoid running out of stock, calculated based on sales velocity, lead time, and safety stock.
What Is a Reorder Point?
The reorder point is the minimum inventory quantity that triggers a restocking order. The formula is: Reorder Point = (Daily Sales × Lead Time) + Safety Stock.
For example, if you sell 10 units/day, your lead time is 30 days, and you keep 5 days of safety stock: Reorder Point = (10 × 30) + (10 × 5) = 350 units.
How SellerLegend Helps
SellerLegend's inventory management calculates sales velocity and helps you determine optimal reorder points, factoring in lead times and seasonal demand variations.
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