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Reorder point

The stock level at which you order again, so the delivery arrives before you run out: sales during the wait plus safety stock.

The reorder point is a number for each item: when stock falls to it, you order. It's daily sales × the days the supplier takes to deliver, plus safety stock. Selling 10 a day, with a 5-day wait and 20 units of safety stock, gives a reorder point of 70.

It only helps if someone notices the moment stock reaches it. In Binhop, an item's alert level does that: the item shows Low, you can be notified, and the stock held back by pending sales is taken into account.

Related terms

Safety stockEconomic order quantity (EOQ)All terms

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  • BinhopLow-stock alerts

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