Ever restocked too late and lost a week of sales on your best-seller? Or restocked too early and now there's a box sitting in the back room you didn't need yet?
There's an actual formula for this, and it takes about 5 minutes per SKU to run:
Reorder Point = (Daily Sales × Lead Time) + Safety Stock
Break it down:
Daily Sales — your average units sold per day (pull from the last 30-90 days)
Lead Time — how many days between placing your order and it hitting your shelf
Safety Stock — your buffer for the unexpected, usually 3-7 extra days of average sales
Real example: a best-selling disposable selling 4 units/day, with a 7-day lead time and a 10-unit safety stock buffer — that's (4 × 7) + 10 = 38 units. When stock hits 38, it's time to reorder, not when the shelf looks empty.
Save this one for your next inventory check. Visit www.getglass.us
