Fulfillment Lexicon

Reorder Point

Reorder Point (ROP) is the inventory level at which a new purchase order should be placed so stock arrives before you run out.

Topic: Inventory Planning Entry INV-219

Why it matters for ecommerce brands

Setting reorder points per SKU and per warehouse prevents both stockouts and emergency air freight.

Formula and example

Reorder point = (average daily sales × lead time in days) + safety stock

Example: 40 units/day × 60 days + 800 = 3,200 units.

Common questions

How do you calculate a reorder point?
Multiply average daily sales by lead time in days, then add safety stock. For example, 40 units a day with a 30-day lead time and 300 units of safety stock gives a reorder point of 1,500 units.

Cite this entry

"Reorder Point (ROP)." Fulfillment Lexicon, last reviewed October 16, 2026. https://fulfillment.wiki/glossary/reorder-point/

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