Reorder level and safety stock calculator

What the reorder level and safety stock calculator does

Running out of stock loses sales; holding too much ties up cash. For each item enter the average and the highest daily sales and the usual and the longest delivery time, and the workbook calculates the safety stock and the reorder level, compares them with your current stock and tells you what to order now.

Who it is for

Shopkeepers, wholesalers and storekeepers who reorder regularly, and operations managers who want a simple rule for when to buy.

How to use the workbook

1. Type the number of days of stock you like to order at the top.
2. List each item with its average and maximum daily sales.
3. Enter the usual and the longest lead time in days from the supplier.
4. Type your current stock and read the status and the suggested order.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Safety stock from the gap between average and worst case
• Reorder level for each item
• Reorder now, order soon or OK status
• Suggested order quantity
• Summary of items by status with a chart

The workbook has these sheets: Instructions, Items, Summary. The main table has the columns Item; Average daily sales; Usual lead time (days); Highest daily sales; Longest lead time (days); Safety stock; Reorder level; Current stock. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Use real sales figures from your records, not guesses.
• Longer or less reliable suppliers need more safety stock.
• Review the numbers each season, since sales change.
• Do a physical stock count regularly so the current stock figure is right.

Why keep this record

Running a business on memory works until it grows. Writing the numbers down turns opinions into facts you can compare month to month, and shows early which products, customers or costs deserve attention. Even a simple workbook, used every week, usually beats a sophisticated one that is opened once a year.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

A plan is only as good as the numbers you put in. Start with honest estimates, update the workbook as real figures arrive, and compare the two so your next estimate is better. Save a dated copy each month so you can see how your thinking changed.

Read how to build a cash flow forecast for the wider picture. Free calculators that go with it: Vat calculator. See more business templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: VAT Calculator
• Guide: VAT invoices and quotations in Kenya: what to include and common mistakes
• Guide: Buying off-plan property in Kenya: the risks and the checks to run
• Guide: Import VAT in Kenya: how to claim it back on your VAT return
• Another template: Pricing and markup calculator
• Another template: Product price list with VAT
• Another template: Product profitability analyser

Need something different? Request a custom template, browse all guides or see every Excel template.