Stock is still available, but the next batch may arrive after the stockout. A reorder point identifies when the inventory position should trigger a replenishment review.
It is not a ready purchase order. Minimum quantities, budget, capacity, shelf life and demand risk still constrain the decision.
1. Define the object
Use one SKU, account, region, fulfilment model, warehouse and snapshot time. Keep available stock, reservations, damaged units, inbound goods and confirmed deliveries separate.
Choose a base, low or high demand scenario and set a review date.
2. Estimate comparable demand
Calculate daily demand from history without hidden distortion. Zero sales during a stockout do not mean zero demand. Mark unavailable days, promotions, price changes and one-off orders.
Do not mix order flow and completed sales. Purchasing usually uses expected completed demand; warehouse load may use order flow.
3. Measure full lead time
Lead time begins when a decision can still be made and ends when inventory becomes sellable. Include approval, supplier preparation, transport, booking, queue, receiving, put-away and data-update delay.
Use observed completed lead times, not only the promised minimum.
4. Define safety stock
Safety stock covers uncertainty in demand and lead time. A simple method uses extra demand days; a mature method uses variability and a chosen service level.
Preserve method, input period and owner. A buffer cannot repair incorrect stock status or systematically understated lead time.
5. Calculate inventory position
Inventory position = available stock + confirmed inbound − outstanding commitments.
Inbound is confirmed only when SKU, quantity, status and expected availability date are known. Do not subtract reservations twice.
6. Calculate the reorder point
Lead-time demand = daily demand × full lead time.
Reorder point = lead-time demand + safety stock.
The signal appears when inventory position is at or below the reorder point.
Worked example
Daily demand is 18.5 units, lead time 14 days and safety stock 80 units. Available stock is 220 and confirmed inbound is 60.
| Metric | Calculation | Result |
|---|---|---|
| Lead-time demand | 18.5 × 14 | 259 |
| Reorder point | 259 + 80 | 339 |
| Inventory position | 220 + 60 | 280 |
| Base deficit | 339 − 280 | 59 |
The 59 units are a planning deficit, not an automatic order.
7. Turn the signal into a plan
Add demand until the next review if control is periodic. Then apply pack size, minimum order quantity, budget, capacity and shelf life. Allocate deliveries by date and warehouse, and record unmet demand when constraints reduce the order.
Check SKU economics before ordering: expedited transport or excess storage can destroy margin.
8. Review the outcome
Compare promised and actual availability, stockout before arrival and excess after arrival. Preserve the original inputs, decision and result instead of rewriting history.
Where ProfitVena helps
Product 360 connects live Wildberries product, sales, returns and inventory data within connected-source coverage. This helps validate inputs and identify SKU risk.
The calculation does not mean ProfitVena automatically places purchases. Forecast Center is preparing for integration and is presented as a preview. Other marketplaces remain on the roadmap until confirmed.
Technical part updated in ProfitVena.
ProfitVena is part of the Wicsora ecosystem.
Methodology and calculator: Reorder point and replenishment plan.
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