Glossary
Reorder point
The reorder point is the stock level at which, once an item falls to it, you should order more from the supplier before it runs out.
What it means for a shop owner
It comes from how fast an item sells and how long the supplier takes: what you sell during the delivery days plus a safety margin. Set it too low and you run out before the order lands, too high and your cash sits in extra stock.
A worked example
You sell 6 boxes a day and the supplier delivers in 4 days, so you need 24, plus 6 for safety. The reorder point = 30 boxes.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes