CCalclabhub

Operations

Days of cover at the trigger

Sanity check: the trigger should represent the lead time plus the chosen buffer, no more and no less.

The Formula

cover = reorder point / daily usage

Sanity check: the trigger should represent the lead time plus the chosen buffer, no more and no less.

SymbolMeaning
CDays of cover
ROPReorder point
dDaily usage

What Each Symbol Means

Cdays

Days of cover

Days the reorder point quantity will last.

ROPunits

Reorder point

Stock level that triggers the next order.

dunits/day

Daily usage

Average units consumed per day.

See It Worked With Real Numbers

A formula on its own does not tell you which number goes where. The how to calculate a reorder point page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.

Where This Formula Appears

This equation is the working core of How To Calculate A Reorder Point, filed under Business. Every number the guide produces comes from substituting into this one line.