The business clarity series · Video 08
Stop Guessing When to Reorder
Running out of stock is frustrating. Ordering more without a plan can tie up cash. A reorder point gives you a starting point.
0:36 · English narration · Captions included in the video
Full transcript
Running out of stock is frustrating. Ordering more without a plan can tie up cash. A reorder point gives you a starting point.
Imagine selling ten units a day, with a supplier lead time of seven days. Expected demand during that wait is seventy units.
Add twenty units of safety stock. The example reorder point is ninety units.
Review seasonal changes, supplier delays, and orders already on the way. No simple formula guarantees that you'll never run out.
Try the free reorder point calculator at YourAI Ledger dot com, and plan your next purchase with more confidence.
Illustrated educational overview. Examples and amounts are fictional where shown. Confirm accounting and tax decisions with a qualified professional.