Inventory Reorder Point Calculator

Stockouts cost more than overstock

Every Tanzanian retailer has felt it: a hot item runs out, customers walk to the next duka, and you lose not only the sale but a piece of trust. The reorder point is the inventory level at which you should place a new purchase order — early enough that the goods arrive before you run out.

The formula

Reorder Point = (Daily Demand × Lead Time) + Safety Stock

• Daily demand — average units sold per day over a representative period.
• Lead time — days between placing the PO and stock landing on shelf.
• Safety stock — buffer for demand spikes and lead-time variability. 3 days is a common starting point; volatile categories may need 7–14.

Common Tanzanian SMB pitfalls

• Ignoring port congestion — Dar port lead times can balloon during peak season; double safety stock for imports in November–January.
• Treating seasonal items as flat-demand — recompute reorder point monthly during seasonal peaks.
• Single-supplier risk — keep a backup supplier for fast-moving SKUs to halve lead-time risk.

Combine with the EOQ Calculator to size each order. Tawala's inventory module computes reorder points per SKU and triggers PO suggestions automatically.

Take this further

A reorder point is only useful if something is watching the stock level for you. Tawala Inventory holds the reorder point per item per branch and raises the purchase order automatically when it is hit.

Not sure which module fits? Compare every option under Tawala solutions, or find the setup for your sector under Tawala by industry.