Small Business

Reorder Point Calculator

Calculate a reorder point for every product by two methods, and see the cash tied up by choosing the safer one.

Delivery: Instant download
Purchase: One-time payment
Format: Google Sheets
Excel
Updated: August 2026

$5.90

What this spreadsheet does

Reordering when a shelf looks empty means you were already out. The two standard methods give very different answers, and applying the cautious one everywhere ties up cash against events that mostly do not happen.

What you can do with it

Set reorder points from your own demand history
See what a 95% service level costs against a 90% one
Find which product is tying up the most cash in safety stock

What's included

Sheet tabs

Instructions
Service Levels
Reorder Points

Features

Reorder point by the statistical method and by the maximum method, side by side
Service level chosen from a lookup table rather than a statistical function, so it behaves identically everywhere
Safety stock floored at zero, so a well behaved item never shows a negative buffer
Extra units held by choosing the cautious method, costed at your unit price
The item where that caution costs most, named
Five sample products with different demand and lead time patterns

How it works

1Enter average daily usage and its standard deviation per product
2Enter normal and worst lead times
3Pick a service level and compare the two reorder points

Who it's for

Retailers, makers and anyone holding stock against a lead time.

The statistical method assumes demand is roughly normally distributed, which is wrong for seasonal or promotion-driven products. Recalculate those per season.

Frequently asked questions

Which method should I use?

The statistical method for most products, and the maximum method only where running out is catastrophic. Using the cautious one across a whole catalogue is common and expensive.

What service level should I pick?

Ninety to ninety five percent suits most ordinary products. Above 95% the stock needed climbs steeply for very little additional cover.

Where do I get the standard deviation?

From your own daily or weekly sales history over a period without unusual events. A spreadsheet computes it in one function, and real history beats any assumption.