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Trading & Commerce

Stock Reorder Point Calculator

Determine the precise reorder point and Economic Order Quantity for each product in your inventory to minimise stockouts and excess holding costs simultaneously.

Result

ParameterFormulaValue
Notes & assumptions: Safety stock = (Max daily demand − avg demand) × lead time. EOQ = √(2 × annual demand × ordering cost / holding cost per unit).

Disclaimer: This tool provides an indicative estimate for general planning only and is not professional, legal, financial, medical or engineering advice. Reference values are editable defaults that vary by location, vendor, regulation and date. Verify critical figures with a qualified professional. Varada Nexus accepts no liability for decisions made using this tool.

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FAQ

What happens if I reorder too late?

Stockouts mean lost sales, emergency procurement at high cost, and damaged customer relationships. Missed deliveries can cause contract penalties in B2B trading.

What is safety stock?

Safety stock is buffer inventory held to absorb demand spikes and supplier delays. It is the minimum stock you should never go below before placing the next order.

Should I use EOQ for all products?

EOQ works best for items with relatively stable demand. For high-value, slow-moving items use Just-In-Time. For highly seasonal items, use seasonal demand profiles instead.