How Reorder Points Are Calculated
Fulfiro calculates reorder points dynamically based on your actual sales data. As your sales patterns change, the calculations adjust automatically -- seasonal products naturally show higher reorder points during busy periods.
The formula
Reorder Point = Daily Sales Velocity x (Lead Time Days + Safety Stock Days)How each component is determined
- Daily Sales Velocity -- Calculated from the last 30 days of SALE stock movements. Total units sold divided by 30.
- Lead Time Days -- Comes from the supplier's lead time setting. If no supplier is assigned, a default is used.
- Safety Stock Days -- Configurable buffer (the number of extra days of stock you want as a safety cushion).
Example
A product sells 10 units per day. The supplier has a 5-day lead time. You want 3 days of safety stock.
Reorder Point = 10 x (5 + 3) = 80 units
When available stock drops to 80 or below, the product appears in reorder suggestions.
Related: Reorder Suggestions | Managing Suppliers | Days Left Forecasting