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Excel Reorder Point Formula

inventory Difficulty:
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=(AvgDailyUsage * LeadTime) + SafetyStock

Quick context

  • • Works in both Excel and Google Sheets.
  • • Use when you need consistent, auditable results.
  • • Copy the snippet above and adjust only the ranges.

When to use

Learn how to use the Excel Reorder Point Formula formula.

Why you need this

The Reorder Point (ROP) tells you exactly when to trigger a new purchase order. It prevents stockouts while minimizing holding costs.

Variables

  • AvgDailyUsage: How many units you sell/use per day.
  • LeadTime: Days from ordering to receiving.
  • SafetyStock: Buffer for variability.

Disclaimer: While we strive for accuracy, these formulas are provided "as is" without warranty of any kind. Please verify all results before use.

Version Control Risk

Manually updating safety stock triggers based on static spreadsheets leads to stockouts. Stop fighting version control.

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