Reorder Points and Safety Stock
InvenPro uses two key thresholds to trigger restocking alerts and purchase orders.
Key Terms
- Reorder Point (ROP) — the stock level that triggers a replenishment alert. When on-hand stock drops to or below ROP, InvenPro alerts you to reorder.
- Safety Stock — a buffer quantity kept to cover unexpected demand or supplier delays. It is the minimum stock you never want to go below.
Formula
Reorder Point = (Average Daily Sales × Lead Time Days) + Safety Stock
Example: You sell 10 units/day. Your supplier takes 7 days to deliver. Safety stock = 20 units.
ROP = (10 × 7) + 20 = 90 units
Setting ROP Manually
- Go to Products → Product Catalog → open a product
- In the Stock Settings tab, enter: Reorder Point, Safety Stock, Reorder Quantity
- Click Save
Auto-Calculate with AI
Go to Products → Velocity Bands → select products → click Auto-Calculate ROP. InvenPro will calculate based on your actual sales history and average supplier lead time.
Comments
Please sign in to leave a comment.