Inventory
Reorder Point
How do you calculate reorder point in inventory management?
The reorder point is the inventory level at which a new purchase order should be placed to replenish stock before it runs out. It equals the expected demand during lead time plus safety stock. For FMCG distributors serving informal trade in Africa, reorder points must be adjusted for irregular order patterns and variable delivery times across different regions.
Ready to optimize your supply chain?
iQStep is the AI-native supply chain platform built for African FMCG and retail companies. Start your free trial today.
Start Free Trial