How the stock reorder works
Formula. Reorder point = daily sales × (lead time + safety days). Best order size (EOQ) = √(2 × yearly demand × cost per order ÷ yearly storage cost per unit).
Example. 18 a day × (12 + 5) days = 306 units. When stock falls to 306, order again.
Tip. Raise the safety days for suppliers who often deliver late, or before busy seasons like Ramadan and Eid.