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Retail Supply Chain lesson

Reorder point

The reorder point is the stock level that just covers sales until a new order arrives.

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About 5–10 minutes · no sign-up needed

The idea

The reorder point is the stock level that just covers sales until a new order arrives:

Formulas

Weekly sales × Lead time

Key points

Reorder pointWeekly sales × Lead time in weeks.
Order whenStock on hand, plus anything already on order, falls to the reorder point.
Rules-basedThe same rule runs for every product and market, every week.

Reorder points turn replenishment into a rule anyone can check.

Practice

Try each one in your head first, then open the answer.

1. What's the US reorder point?
250 × 4 = 1,000 units
2. In D3, work out the US reorder point: weekly sales × lead time.
=B3*C3
3. Tap a market that should order now.
The UK, Canada and Australia are at or below their reorder points.
4. What's Germany's reorder point?
100 × 6 = 600 units

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed