Inventory Optimization Utility
Reorder Point (ROP) & Safety Stock Calculator
Determine the exact inventory threshold when a purchase order must be sent to your medicine distributor to avoid stockouts while minimizing holding costs.
Demand & Lead Time Parameters
Formulas:
• Safety Stock = (Max Daily × Max Lead) − (Avg Daily × Avg Lead)
• Reorder Point (ROP) = (Avg Daily × Avg Lead) + Safety Stock
• Safety Stock = (Max Daily × Max Lead) − (Avg Daily × Avg Lead)
• Reorder Point (ROP) = (Avg Daily × Avg Lead) + Safety Stock
Inventory Thresholds
Reorder Point (ROP)
175 Units
Place new distributor order when stock drops to this level
Lead Time Demand (Normal):
60 Units
Safety Buffer Stock:
115 Units