What is a reorder point?
The stock level that tells you to place a new order. It equals average daily sales × (supplier lead time + safety days). When stock falls to it, the new order arrives just before you run out.
How much safety stock do I need?
A common start is one to two weeks of sales. Use more if your supplier is unreliable or sales swing a lot, less for slow or cheap items.
Estimates only. Not tax, legal or financial advice. More free tools