Reorder Level (ROL)

The Reorder Level calculator computes the reorder level as a function of the  demand per day, lead time, and safety stock.  It is also known as the Reorder Point (ROP).

INSTRUCTION: Choose the preferred units and enter the following:

•  (LT)  This is the Lead Time which is the time it takes from order placement to order receipt
• (D)  This is the expected average daily Demand
• (n) This is the number of orders.
• (Q_o)  This is the optimal order size.

Reorder Level: The calculator returns the Reorder Level

Other Inventory Management Calculators:

• Economic Order Quantity
• Holding Cost per Day
• Optimal Stock Cycle Length
• Variable Cost Per Unit Time
• Optimal Value of Variable Cost per Unit Time
• Total Cost Per Unit Time
• Optimal Cost per Unit Time
• Reorder Level

EXAMPLE

Toto's shoe retail shop sells 50 units of baby boots of one of a famous brands daily. The supplier takes a 4 days to deliver the order. Using the calculator above, the inventory manager should place an order before the inventories drop below 200 units (50 units of daily usage multiplied with 4 days of lead time) in order to avoid a stock-out.