Discover Flowlity's free interactive reorder point calculator: adjust demand, lead time, variability and service level to see your reorder point move, and why the textbook formula falls short for intermittent spare parts.
Reorder point calculator
The textbook formula, plus the caveat for spare parts.
95.0%
On-hand stock (demand fixed)Reorder point (moves with service)Lead time
Cycle demand (d × LT)
-
units
Safety stock (Z × σ × √LT)
-
units
Reorder point (ROP)
-
units · Z = -
Caveat: intermittent spare parts
This assumes demand is roughly normal and steady. Intermittent spare parts are lumpy: long stretches of zero, then a sudden order. That demand is not normal, so this reorder point understates the buffer you need. Methods built for intermittent demand, like Croston or a probabilistic model, fit far better.
Illustrative, textbook reorder point on a normal demand assumption. Not a Flowlity output or a performance guarantee.