Check inventory position
On-hand stock alone does not tell you whether to reorder. Include open purchase quantities you expect to receive, then subtract backorders that already claim that stock. Keep every quantity in the same unit for one SKU.
For the synthetic example below, on-hand 20 plus on-order 24 minus backorders 0 gives a position of 44. An open order is assumed usable in this calculation; check its delivery date and reliability separately.
Set a trigger and target
A reorder point is the trigger to review replenishment. The target also covers the review period. In this tool, safety stock is a quantity you choose, not a service-level calculation or guarantee against stockouts.
Target = daily demand × (lead + review days) + safety stock
| Assumption | Value |
|---|---|
| Demand per day / lead / review | 6 / 7 / 7 |
| Safety stock / inventory position | 12 / 44 |
| Reorder point: 6 × 7 + 12 | 54 |
| Target: 6 × (7 + 7) + 12 | 96 |
Position 44 is at or below point 54, so replenishment is triggered. The target shortage is 96 − 44 = 52. The calculator uses a constant entered daily demand and does not model seasonality or a dated supply pipeline.
Apply MOQ and packs
If the minimum order quantity is 24 and a full pack contains 12 units, the larger of shortage 52 and MOQ 24 is 52. Round that up to five packs: the suggested order is 60 units. MOQ applies only when a positive shortage has triggered an order.
Calculate multiple SKUs from Excel or CSV · Check a single-SKU example
Before you order
- Confirm units, stock balances, open orders and existing backorders. Avoid counting the same stock twice.
- Check supplier lead times, incoming dates, MOQ and pack sizes against current purchasing information.
- Review unusual demand, substitutions and discontinued SKUs manually. A formula is a planning aid, not purchase approval.
Background: Microsoft distinguishes reorder policies and projected available inventory. Warelium uses the explicit simplified formula above; it does not reproduce an ERP planning engine. Microsoft reordering policies
Continue your stock workflow
A practical cycle counting workflow
Want to keep product setup, stock movements and reorder records in one file? Try the free Excel sample and compare the full kit.