even
← Back to glossary

Meldebestand

Also: Bestellpunkt, Meldemenge, Mindestbestand, Nachbestellpunkt, Reorder Point

AI-generated

In brief

The reorder point is the inventory level below which a replenishment order is triggered. It is calculated from the expected consumption during the replenishment lead time plus a safety stock.

Key facts

What is the reorder point?

The reorder point refers to the stock value of an item at which, upon being reached or fallen below, a replenishment order is initiated either automatically or manually. It is a central control element in the reorder point method and ensures that new material arrives in time before stock drops to zero. The basic formula is: Reorder point = average consumption per unit of time × replenishment lead time + safety stock. All three variables must be reviewed and adjusted regularly, as consumption patterns and delivery times can change.

How does the reorder point work in practice?

In an inventory management or warehouse management system, the reorder point is stored as a parameter for each item. As soon as a goods withdrawal brings the available stock to or below this threshold, the system generates a purchase proposal or triggers an order directly. The following variables are factored into the calculation:

  • Replenishment lead time: The time from placing the order to the receipt of goods in the warehouse, including supplier lead time, transit time, and internal goods receipt.
  • Average consumption: Typically determined from historical goods issue data; for seasonal items or new listings, this value is uncertain and must be estimated conservatively.
  • Safety stock: A buffer that absorbs fluctuations in consumption and delivery time. The level depends on the desired service level and the variance of the input variables.

Important: the reorder point and safety stock are not the same thing. Safety stock is the minimum buffer that should ideally never be touched. The reorder point sits above it and includes the expected consumption during the procurement phase.

What matters when configuring parameters?

The quality of the reorder point stands or falls with the underlying data. Outdated or broadly estimated values lead either to unnecessarily high inventory levels or to stock shortages. In practice, it is advisable to differentiate items by their importance — an ABC analysis helps to focus the effort of individual parameterization on the truly critical items. For items with highly variable consumption or long, unstable lead times, the reorder point should be reviewed more frequently than for stable C-items. Purchasing and planning must work closely together: changed delivery conditions, new minimum order quantities, or a change of supplier directly affect the replenishment lead time and require an adjustment of the parameters. Many ERP and WMS systems offer automated recalculation proposals, but their plausibility should be verified manually.

Frequently asked questions

The reorder point is derived from: average consumption per unit of time multiplied by the replenishment lead time, plus safety stock. All input values should be based on current consumption and delivery data and reviewed regularly.

Related terms

Matching categories