In short: A reorder point is the stock level at which you order more from the supplier, so the delivery arrives before the item runs out.
The full guide: Shop inventory management
Work it out now: Stock days
A reorder point is a number you set for each item. When stock drops to that level, you place a new order. The basic formula: reorder point = average daily sales × supplier lead time in days + safety stock. Safety stock is the extra cushion that protects you when sales jump unexpectedly or the supplier turns up a day or two late, so customers never face an empty shelf.
In an Amman supermarket, some distributors visit weekly while others need three days after you order, so the reorder point differs from item to item even when sales look similar. In Ghalleh you see how many days each item's stock will last at its current pace, the Low button lists what is running out, the order list gathers it into a message for the supplier, and a low-stock alert can reach your phone.
Reorder point, order quantity and safety stock
| Term | Answers | Depends on |
|---|---|---|
| Reorder point | When do I order? | Sales pace, lead time and safety stock |
| Order quantity | How much do I order? | Sales pace, shelf space, shelf life and volume discounts |
| Safety stock | How much do I keep in reserve? | How much sales swing and how reliable the supplier is |
Common reorder point mistakes
- One number for every item, although their pace and suppliers differ.
- Forgetting the seasons: Ramadan, Eid and the start of school look very different from the rest of the year.
- A reorder point set too high on short shelf-life items, so goods expire before they sell.
- Not updating the lead time when the supplier or delivery day changes.
A shop example
A supermarket in Amman sells 12 bags of sugar a day, the supplier delivers 3 days after an order, and the owner keeps 10 bags as safety stock. Reorder point = 12 × 3 + 10 = 46 bags. When stock hits 46, the order goes out straight away.
Common questions
What is a reorder point in Arabic?
نقطة إعادة الطلب, also called حد إعادة الطلب. Both mean the stock level at which you order again.
What is the difference between reorder point and order quantity?
The reorder point tells you when to order, the order quantity tells you how much. Quantity depends on sales speed, shelf space, shelf life and any supplier volume discounts.
How big should safety stock be?
It depends on how much your sales swing and how reliable the supplier is. A practical starting point is one or two days of sales, then adjust per item from experience.