Lessons › Retail Supply Chain › Replenishment
Retail Supply Chain lesson
Reorder point
The reorder point is the stock level that just covers sales until a new order arrives.
Try this lesson free →The idea
The reorder point is the stock level that just covers sales until a new order arrives:
Formulas
Weekly sales × Lead timeKey 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
1. What's the US reorder point?
250 × 4 = 1,000 units2. In D3, work out the US reorder point: weekly sales × lead time.
=B3*C33. 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 unitsLearn 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.
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