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.