Track this for every product, automatically
The Small Business Inventory Tracker (Excel + Google Sheets) updates stock from your purchases and sales, flags OK / REORDER / OUT OF STOCK, builds your reorder list with quantities and cost, and shows profit per sale and by month.
Get the Inventory Tracker (-30% code STOCK30) Free Reorder Checker (25 products)
Reorder point formula
Reorder point = (average daily sales × lead time) + safety stock.
Safety stock (max–average method) = (max daily sales × max lead time) − (average daily sales × average lead time). It covers busy days and late deliveries.
When stock on hand falls to the reorder point, place your order. A simple order quantity is: daily sales × days of cover − stock on hand + safety stock.
FAQ
What's a good lead time to use? The real average number of days between placing an order and having sellable stock, including shipping and prep.
Do I need software? Not for a small catalog: a spreadsheet with a reorder point per product works well up to a few hundred SKUs.
See also: free paycheck budget calculator.