Reorder point formula, with and without safety stock

By mise · Updated September 29, 2026

Quick answer: reorder point = average daily usage × lead time in days + safety stock. Without safety stock it is just usage × lead time. When stock on hand drops to that level, place the order. A simple safety stock is (maximum daily usage × maximum lead time) − (average daily usage × average lead time).

The reorder point answers one question: at what stock level must I order so the delivery arrives before I run out? Here's the formula and how to pick a sensible safety stock.

The formulas

Reorder point = daily usage × lead time + safety stock

Safety stock ≈ (max daily usage × max lead time) − (average daily usage × average lead time)

Example: a café uses 8 bags of coffee beans a week (about 1.2 a day). The roaster delivers in 3 days, 5 at worst; on busy days usage hits 2 bags. Safety stock = (2 × 5) − (1.2 × 3) = 6.4 → 7 bags. Reorder point = 1.2 × 3 + 7 = 10.6 → order when you get down to 11 bags.

Without safety stock

Usage × lead time is the bare minimum: it works only if usage and delivery are perfectly predictable. In food service they almost never are — a rainy weekend, a late truck — so keep a buffer on anything that would take a dish off the menu.

Reorder point vs par level

	Reorder point	Par level
Answers	When to order	How much to have after delivery
Best for	Items ordered whenever needed	Items on a fixed delivery schedule
Formula	usage × lead time + safety	usage × (cycle + lead time) + safety

Calculate both with the par level calculator.

mise watches your stock on hand as deliveries and usage come in, and warns you when an item drops below its minimum, with the quantity to order.

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Keep reading Restaurant stock control: a practical guide Restaurant inventory turnover: formula and industry average Par level: meaning, formula and calculator All guides

Frequently asked questions

What is the reorder point formula?

Average daily usage × lead time in days + safety stock.

How do you calculate reorder point without safety stock?

Multiply average daily usage by lead time in days. It only works when usage and delivery times are very stable.

What is a good safety stock?

Enough to cover the worst realistic combination of high usage and a late delivery: (max usage × max lead time) − (average usage × average lead time) is a practical rule.