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.
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/