A reorder point is the inventory level where you should place a new purchase order. The goal is simple: give your business enough time to receive the next shipment before you run out. A good reorder point helps reduce stockouts without forcing you to carry more inventory than necessary, which makes it useful for both operations and cash flow planning.
" }, "name" : "What is a reorder point, and why does it matter?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "If you select weekly demand, the tool converts that number into daily demand by dividing by 7. That daily rate is then used to calculate demand during lead time. This keeps the math consistent, especially when lead time is entered in days, and it gives you a clearer reorder trigger in units.
" }, "name" : "How does the calculator handle weekly demand?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "If your demand changes from week to week or suppliers don't always deliver on time, adding safety stock is usually a smart move. It creates a buffer above expected lead time demand, so you're less likely to run short. If your demand is very steady and lead times are reliable, you may choose to leave it at zero, but many teams prefer some cushion for peace of mind.
" }, "name" : "Should I include safety stock in the calculation?" } ] } ```