Reorder Point & Safety Stock Calculator

Pro v1.0.0 1 view

Calculate optimal inventory reorder points and safety stock levels using statistical analysis of historical sales data.

What You Get

Eliminate stockouts while minimizing excess inventory investment through scientifically-calculated reorder points, safety stock levels, and urgency assessments.

The Problem

Inventory managers struggle to determine when to reorder products. Order too early and capital is tied up in excess stock. Order too late and you lose sales to stockouts. Manual guesswork leads to both problems simultaneously - overstocked on some items while running out of others.

The Solution

This skill calculates optimal reorder points using standard inventory management formulas. It analyzes historical sales data to determine demand variability, applies appropriate Z-scores for desired service levels (90-99%), and accounts for supplier lead times. For seasonal products, it calculates separate reorder points for each season. For multi-SKU portfolios, it prioritizes which items need urgent attention and calculates total safety stock investment.

How It Works

  1. 1 Collect historical sales/usage data (daily or weekly for 3-12 months), lead time, and desired service level
  2. 2 Perform statistical analysis: calculate average demand, standard deviation, coefficient of variation, and remove outliers
  3. 3 Calculate safety stock using formula SS = Z x sigma x sqrt(lead time) with appropriate Z-score for service level
  4. 4 Calculate reorder point as lead time demand plus safety stock
  5. 5 Assess current inventory status and assign urgency level (OK, LOW, URGENT)
  6. 6 Generate comprehensive report with calculations, recommendations, and action items

What You'll Need

  • Historical sales or usage data (minimum 3 months, 12+ months for seasonal analysis)
  • Supplier lead time in days
  • Desired service level (90%, 95%, 98%, or 99%)
  • Current inventory level (optional, for urgency assessment)
  • Cost data (optional, for EOQ calculation)

Get This Skill

Requires Pro subscription ($9/month)

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