Running out of a popular product loses sales; holding too much of a slow one ties up cash. A reorder level, the stock quantity at which you place a new order, helps you find the balance.
A simple formula
Estimate how many units you sell per day and how many days your supplier takes to deliver. Multiply them, then add a small safety buffer for busy days:
Reorder level = daily sales × delivery days + safety stock
For example, if you sell about 10 units a day, delivery takes 3 days and you keep a buffer of 10 units, reorder when stock reaches 40.
Use your sales history
Product sales reports show how quickly each item sells. Start with your best sellers, because they cause the most lost sales when they run out.
Let the system warn you
Enter the reorder level as the product's alert quantity. Products below it then appear in your low-stock list, so reordering becomes a daily habit instead of a surprise.
Review regularly
Sales change with seasons and promotions. Review reorder levels every few months, and before busy periods.