Reorder Point
The stock level that triggers a new purchase order to avoid running out.
Definition
A reorder point (ROP) is the minimum quantity of an item that should remain in stock before a replenishment order is placed. When inventory drops to or below this level, it signals that it is time to reorder — ensuring stock arrives before you run out.
Formula
Reorder Point = (Average Daily Usage × Supplier Lead Time in Days) + Safety Stock
Why It Matters
Without a reorder point, restocking happens reactively — only after an item runs out. This causes stockouts, emergency orders, and disruption. Setting a reorder point for each supply item turns reactive ordering into a proactive system. It is one of the highest-leverage changes an office manager can make.
Example
Your office uses 2 reams of printer paper per day. Your supplier takes 3 days to deliver. You keep 4 reams as safety stock. Reorder Point = (2 × 3) + 4 = 10 reams. When stock drops to 10 reams, place an order.
Related Terms
Par Level
The minimum quantity of an item that should always be on hand.
Safety Stock
Extra inventory kept as a buffer against demand spikes or supplier delays.
Lead Time
The time between placing a supplier order and receiving the goods.
Consumption Tracking
Monitoring how fast supplies are used to forecast demand and set accurate par levels.
Put Reorder Point into practice
OfficeStoreApp tracks par levels, reorder points, and consumption automatically — no spreadsheets, no manual counting.
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