A 14-day lead time with a safety buffer
Stock: 500, daily sales: 20, lead time: 14 days, safety stock: 50
Stock days: 25 · Reorder point: 330 units (20×14 + 50) · Days until reorder: 8.5.
Calculate how many days your current stock will last and the reorder point that keeps you from running out.
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Running out of stock and over-ordering are both expensive in their own way — the first loses sales, the second ties up cash. The reorder point is the number that avoids both: order when stock hits it, and the replacement arrives right as the old stock runs out.
Stock: 500, daily sales: 20, lead time: 14 days, safety stock: 50
Stock days: 25 · Reorder point: 330 units (20×14 + 50) · Days until reorder: 8.5.