Solution
How to calculate minimum stock correctly
The minimum stock (reorder point) is the quantity at which you should reorder so an item never runs out. Set it right and you avoid shortages without tying up unnecessary capital. Here is how to calculate it – with a simple formula and an example.
Last updated: · Lavesy editorial team
Sound familiar?
- Items run out too early and slow down the job.
- Or the warehouse is overfull and ties up money.
- The right time to order is pure gut feeling.
How Lavesy helps
Simple formula
Minimum stock = daily consumption × lead time (+ safety buffer).
Fewer shortages
Order in time, before an item runs out.
Less tied-up capital
Do not store more than necessary.
Automatic warning
Lavesy reports when the minimum stock is reached.
How it works
- 1Estimate the average daily consumption per item.
- 2Determine the supplier’s lead time in days.
- 3Minimum stock = consumption × lead time + safety buffer.
- 4Store the value in Lavesy – warning and reordering run automatically.
Frequently asked questions
What is the difference between minimum and target stock?
The minimum stock triggers the reorder; the target stock is the quantity that is replenished to.
How big should the safety buffer be?
The more consumption and lead time fluctuate, the higher the buffer – often 10–30 % of the calculated quantity.