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How to calculate the reorder point in Excel and Google Sheets
Excel & Google Sheets
=B2 + (B3 * B4)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Current Inventory | Average Daily Usage | Lead Time (Days) | Reorder Point |
| 50 | 5 | 10 |
=B2 + (B3 * B4)→5
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Sample data — click any cell to edit
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Step by step
- 1Enter your current inventory level in cell B2.
- 2Input your average daily usage in cell B3.
- 3Specify the lead time in days in cell B4.
- 4In cell B5, enter the formula =B2 + (B3 * B4) to calculate the reorder point.
Tips
- Ensure all units of measurement are consistent (e.g., days for both usage and lead time).
- Regularly update your usage and lead time estimates to maintain accuracy.
- Consider safety stock in your calculations for better inventory management.
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Frequently asked
What is the reorder point?
The reorder point is the inventory level at which a new order should be placed to avoid stockouts.
How do I account for safety stock in the formula?
Add the safety stock quantity to the formula: =B2 + (B3 * B4) + safety_stock.
Can I use this formula for seasonal products?
Yes, adjust the average daily usage and lead time to reflect seasonal variations.