If you’re looking for a reorder point calculator, you’ve come to the right place. Fishbowl Inventory’s reorder point calculator is now available for you to use anytime you need it, free of charge.
As its name implies, the reorder point is the moment when the number of products you have in stock falls to a certain level so you should reorder them to make sure you don’t run out. The reorder point is an important part of order management. It helps you keep a balance between overstock and stockout.
To calculate your reorder point for each product, you need to know four facts:
– Lead Time. This is how many days it takes from the time you order a product to when it arrives at your location.
– Safety Stock. This is how many of a certain product you keep in reserve to handle unforeseen crises.
– Basic Stock. This is how many days’ worth of a specific product you usually keep in stock.
– Unit Sales Per Day. This is self-explanatory; it’s how many of a particular product you sell in a day, on average.
It can be challenging to decide how many products you should keep in stock and in reserve. It can also be difficult to tell how many sales you make in a day and how long it takes to receive new products, unless you’re using inventory management software to track all of these things.
Inventory management software can automatically calculate your lead time, safety stock, basic stock and unit sales per day based on all the information it compiles. This can be a big time saver and remove all of the guesswork from calculating the reorder points for all of your products.
Get a free inventory software demo to start enjoying these and many other benefits. In the meantime, you can also use the free reorder point calculator.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business. Fishbowl is the #1-requested manufacturing and warehouse management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies.