Free inventory tool

Reorder point and safety stock calculator.

Enter how much you use a day and how long a supplier takes to deliver. You get the stock level at which to reorder, with safety stock worked out three ways, and the stock levels in ICAI’s study material for CA students.

  • Three safety stock methods
  • ICAI re-order, minimum and maximum levels
  • Nothing is sent or saved

Reorder point calculator

Work out
Safety stock

Covers the busiest days over the longest wait.

Your reorder point

Reorder point: 300 units
Usage over the lead time15 × 10
150
Safety stock20 × 15 − 15 × 10
150
Reorder point, exact
300

Order when stock falls to this level. Rounded up to a whole unit. Nothing you type leaves this page.

How it’s worked out.

The stock levels are ICAI’s, from its CA Intermediate study material. The service-level method is the standard one from operations courses.

  1. Reorder point = expected usage over the lead time + safety stock.

    Source: MIT OpenCourseWare, ESD.260 Inventory Management, slide 9, checked 17 Oct 2026

  2. Safety stock is stock kept over and above lead-time usage, as a cushion against unexpected demand.

    Source: ICAI study material, Cost and Management Accounting, Material Cost, p. 2.33, checked 17 Oct 2026

  3. Re-order level = maximum consumption × maximum re-order period. The re-order period is also called the lead time.

    Source: ICAI study material, Cost and Management Accounting, Material Cost, p. 2.22–2.23, checked 17 Oct 2026

  4. Minimum stock level = re-order level − (average consumption × average re-order period). Average consumption is also called normal consumption.

    Source: ICAI study material, Cost and Management Accounting, Material Cost, p. 2.23, 2.27, checked 17 Oct 2026

  5. Maximum stock level = re-order level + re-order quantity − (minimum consumption × minimum re-order period). The re-order quantity may be the EOQ.

    Source: ICAI study material, Cost and Management Accounting, Material Cost, p. 2.27, checked 17 Oct 2026

  6. Average stock level = minimum level + ½ re-order quantity, or ½ (minimum level + maximum level). Danger level = average consumption × lead time for an emergency purchase.

    Source: ICAI study material, Cost and Management Accounting, Material Cost, p. 2.27, checked 17 Oct 2026

  7. For a service level, safety stock = Z × the standard deviation of demand × √(lead time ÷ the period the deviation was measured over).

    Source: P. L. King, APICS magazine, July/August 2011, p. 34, checked 17 Oct 2026

  8. Z is 1.282 for 90%, 1.645 for 95%, 1.960 for 97.5% and 2.326 for 99%.

    Source: NIST/SEMATECH e-Handbook of Statistical Methods, 1.3.6.7.1, checked 17 Oct 2026

One example, step by step.

A trader in Indore sells 15 cartons of an item a day, 20 on a busy day and 10 on a slow one. The supplier delivers in 10 days, 15 at worst and 5 at best. The EOQ is 200 cartons.

Usage over the lead time15 × 10 days
150
Reorder point, 5 days of cover150 + 15 × 5
225
Reorder point, 95% service level150 + 1.645 × 4 × √10 = 170.81
171
Minimum level (ICAI)300 − 15 × 10
150
Maximum level (ICAI)300 + 200 − 10 × 5
450
Danger level (ICAI)15 × 4 emergency days
60
Safety stock, max − average20 × 15 − 15 × 10
150
Reorder point, max − average, cartons
300

Order when stock falls to 300 cartons. That is ICAI’s re-order level too: 20 a day × 15 days.

An illustration. The figures are ICAI’s Illustration 6 in the Material Cost chapter, with a standard deviation of 4 cartons a day assumed for the service-level line.

What it does not cover.

A reorder point is only as good as the usage and lead times behind it. Check these first.

  • Usage that changes with the season

    The figures assume this month looks like last month. Before a festival season or after a price change, work it out again with new usage.

  • Ordering on fixed days

    If you only place orders once a week, stock can fall well below the reorder point before the next order goes out. Count the wait in the lead time.

    Work out the deviation of demand over the total lead time, including any review period.

    Source: P. L. King, APICS magazine, July/August 2011, p. 34, checked 17 Oct 2026

  • Lead times that vary

    The service-level method here treats the lead time as fixed. If deliveries swing a lot, you need more safety stock than it shows. “Max − average” allows for the longest wait.

  • Other safety stock formulas

    Some textbooks and exam papers use other versions. An older ICAI practice manual gives one based on the gap between maximum and average lead time.

    Safety stock = annual demand ÷ 365 × (maximum lead time − average lead time).

    Source: ICAI practice manual, IPCC Cost Accounting, Material, p. 2.6, checked 17 Oct 2026

  • Many items, many suppliers

    The calculator works one item at a time. For hundreds of items, keep the levels on each item in your stock system.

Reorder questions people ask.

1.

What is a reorder point?

The stock level at which you place the next order. It is what you expect to use while the order is on its way, plus safety stock for a busy day or a late delivery.

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