Calculate reorder point
calculate_reorder_pointUse this when someone asks how much safety stock to hold or at what stock level to reorder a product. Give a daily demand history (best) or an average daily demand with its variability, plus the supplier lead time and a service level. Returns safety stock, lead-time demand and the reorder point with Forthcast's formula and assumptions. Works without a connected store.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| daily_demand | No | Daily units sold, oldest first, 14 to 365 values. | |
| service_level | No | Target in-stock probability, 0.50 to 0.99 (95 also accepted). | |
| lead_time_days | Yes | Supplier lead time in days. | |
| demand_std_daily | No | Standard deviation of daily demand; assumed sqrt(average) when omitted. | |
| average_daily_demand | No | Average units sold per day, if no daily history. |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
| basis | Yes | ||
| z_score | Yes | ||
| assumptions | Yes | ||
| connect_hint | No | How to get this done automatically on live store data. | Forthcast does this automatically for Shopify stores: https://apps.shopify.com/forthcast |
| safety_stock | Yes | ||
| reorder_point | Yes | ||
| service_level | Yes | ||
| lead_time_days | Yes | ||
| demand_std_daily | Yes | ||
| lead_time_demand | Yes | ||
| intermittent_demand | Yes | ||
| average_daily_demand | Yes |