What number should I set as the low-stock alert in my inventory app or spreadsheet?
Set the reorder point in whole units, as the calculator rounds it up. That way the alert fires while you still hold enough to cover sales during the lead time plus your safety stock. Watch two things, though: if your system alerts on shelf stock only, it cannot see what is in transit, and the figure does not update itself when sales or the supplier change.
From the calculator to the alert field
Most inventory apps and store dashboards let you set a minimum per product that triggers an alert when stock falls below it, and in a spreadsheet you can do the same with conditional formatting that colours the cell. The question is always which number. Many people set a round figure such as 50 or 100 for every product, which means fast sellers warn you too late and slow ones far too early.
Example: the alert level for one product
You sell 8 units a day, the supplier needs 12 days, and safety stock is 30 units.
Demand during lead time 8 × 12 = 96, reorder point 96 + 30 = 126 units. Set 126 as the alert level.
If the supplier now needs 16 days: 8 × 16 = 128, and the point is 128 + 30 = 158 units. The alert must go up to 158.
If daily sales are fractional, such as 7.4 units: the point is 118.8, and the calculator shows the whole-units line as 119. Set 119, not 118.
Look at the second case: four extra days of lead time raised the level by 32 units. Leave the alert at 126 and it arrives four days of sales late, so the safety stock starts running down on an ordinary wait.
Why whole units, rounded up?
Because inventory apps count in units, and an alert at 118 fires only after stock has dropped below the true point of 118.8. The calculator rounds up on purpose and tells you: you cannot hold part of a unit, so reorder when stock reaches 119 units. Use that figure as it is.
The steps
- For each product, enter daily sales, lead time and safety stock in the Inventory reorder-point calculator.
- Take the whole-units line if it appears, or the reorder point itself if it is already a whole number.
- Set it as the product's alert level in your app or sheet.
- If your app imports alert levels from a file, prepare a sheet with two columns: product code and level. If the app wants JSON rather than CSV, convert between them with the CSV and JSON converter.
- Set a monthly reminder to recalculate, because the calculator does not update the figure for you.
Shelf-only alerts cannot see open orders
Most alerts work on the stock recorded on the shelf. If an order is already on its way, the alert will still fire even though that order covers you, and you may order twice. Before placing a new order on an alert, add what you have ordered and not yet received to shelf stock and compare the total with the level. If the total is below it, send the order with the Purchase-order generator.
Common questions
Should I set the alert a little above the point to be safe?
Safety stock is already the buffer, so there is no need for another on top. If you feel you need more, raise the safety stock in the calculator itself so the working stays clear.
How often should I update the alert level?
Whenever daily sales or lead time change noticeably, and around seasons. A simple monthly reminder is enough for most small shops.