Reorder Planning
How to Calculate Reorder Points (With Lead Time Variance)
Devottam Kumar 2026-08-10 6 min read
Placing purchase orders too late results in stockouts; placing them too early inflates holding costs. Here is how to calculate exact Reorder Points per SKU.
The Standard Reorder Point Formula
Reorder Point (ROP) = (Average Daily Sales × Lead Time in Days) + Safety Stock. When your available inventory hits this number, issue your purchase order immediately.
How EVE Automates This
Instead of manually building spreadsheet models for how to calculate reorder points (with lead time variance), EVE processes your native Shopify export CSV in 60 seconds.
Learn more about Inventory Forecasting Solutions →Related Glossary Terms:
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