Safety Stock vs Reorder Point
Safety stock is the buffer inventory held for uncertainty. Reorder point is the inventory level that triggers a new order.
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Use safety stock to size risk protection. Use reorder point to decide when to replenish.
Safety stock is best for demand and lead-time uncertainty.
Reorder point is best for operational replenishment triggers.
A reorder point should include expected lead-time demand plus safety stock.
Lead-time inventory policy
If lead-time demand is 500 units and safety stock is 120 units, the reorder point is 620 units.
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When should I use Safety Stock vs Reorder Point?
Use safety stock to size risk protection. Use reorder point to decide when to replenish.
Which calculator should I open next?
Start with Safety Stock Calculator, then use the related calculator workflow to validate the result from another angle.
Use this guide with the full Inventory Planning Calculators
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