How to Calculate Reorder Points (With a Formula Made for Makers)
Learn how to calculate reorder points for your craft business using a simple formula. Never run out of materials mid-order again — with worked examples for makers.
Last updated: March 2026
You’ve run out of your best-selling material twice this quarter. Both times, you didn’t see it coming until it was too late — a customer order sitting open, your supplier’s lead time ticking away, and a mad scramble to figure out what went wrong.
This isn’t a forecasting problem. It’s a reorder point problem. And it has a simple fix.
You don’t need demand forecasting software. You need to do one calculation, once, for each material you use regularly. That number tells you exactly when to place your next order — before you’re already in trouble.
This guide covers what reorder points are, how to calculate them with a formula built for makers, how they differ from safety stock, and how to set them up in Craftybase so the system reminds you before you hit zero.
What Is a Reorder Point?
A reorder point is the inventory level at which you need to place a new order. Not when you’ve run out. Not when you’re almost out. At a specific, pre-calculated number that accounts for how long your supplier takes to deliver and how fast you burn through materials.
When your stock of a material drops to that number, you order more. That’s the whole idea.
It’s not enterprise jargon. Plenty of solo makers use reorder points without realising it — they just call it “I order more lye when the bag gets low.” The difference is that “looks low” is a feeling, and a reorder point is a number. Numbers don’t forget. Feelings do.
Good raw material inventory management is built on exactly this kind of consistent, repeatable system — and reorder points are one of the best places to start.
The Reorder Point Formula (with Maker Examples)
The formula is straightforward:
Reorder Point = (Average Daily Demand × Lead Time in Days) + Safety Stock
Three inputs. Let’s break each one down.
Average Daily Demand is how much of a material you use on a typical day. If you make 15 bars of soap a day and each bar uses 30g of lye, your average daily demand for lye is 450g.
Lead Time is how many days it takes from the moment you place an order to the moment it arrives at your workshop. Check your past invoices — add up the days between order date and delivery date, then average them. If your supplier is usually 12–16 days, use 14.
Safety Stock is a buffer on top of that. It covers you if your supplier runs late, or if you have an unexpectedly busy week. A reasonable starting point is 5–7 days of average demand. (More on safety stock in the next section.)
Worked Example: Lye for a Soap Maker
- Daily soap output: 15 bars
- Lye per bar: 30g
- Average daily demand: 450g
- Supplier lead time: 14 days
- Safety stock: 7 days × 450g = 3,150g
Reorder Point = (450 × 14) + 3,150 = 9,450g
Reorder when your lye drops to 9.45kg. Simple as that. You won’t run out before the delivery arrives, and you’ve got a week’s cushion if anything goes sideways with the order.
Worked Example: Fragrance Oil for a Candle Maker
- Daily candles: 20
- Fragrance per candle: 15ml
- Average daily demand: 300ml
- Supplier lead time: 7 days
- Safety stock: 5 days × 300ml = 1,500ml
Reorder Point = (300 × 7) + 1,500 = 3,600ml
Order more fragrance oil when you drop below 3.6 litres.
Both examples use the same formula. The numbers just change per material.
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Safety Stock vs Reorder Point — What’s the Difference?
These two terms get used interchangeably, but they’re not the same thing.
Safety stock is the buffer inventory you always keep on hand. It’s the amount sitting in your workshop that you never intend to dip into unless something goes wrong — a late delivery, a surprise bulk order, a week where you made twice your usual output. Think of it as your emergency reserve.
The reorder point is the trigger level that includes that reserve. By the time your stock reaches the reorder point, you’ve already factored in safety stock. The goal is that your new order arrives before you’ve eaten into it.
Here’s a concrete way to see it:
- Your supplier takes 14 days and you use 450g/day — so you need 6,300g just to cover lead time.
- You keep 3,150g safety stock as a buffer.
- Your reorder point is 9,450g — that’s lead time demand plus safety stock combined.
If you only reorder when you hit safety stock levels, you’re already in trouble. The reorder point is higher precisely because it gives you lead time to restock before you start touching that buffer.
For a deeper look at how to size your safety stock, read our guide on how to calculate safety stock. The two concepts work together — you need both numbers to manage materials well.
Common Reorder Point Mistakes Makers Make
Getting the calculation right takes a bit of practice. A few things trip people up:
Using gut feel instead of actual lead time data. You think your supplier is “about 2 weeks,” but your past five orders show 10 days, 18 days, 12 days, 15 days, 14 days. That’s an average of 13.8, and a worst case of 18. Build your formula around real data, not your best guess.
Setting the same reorder point for every material. A material with a 3-day lead time doesn’t need the same buffer as one coming from overseas with a 21-day lead time. Each material needs its own reorder point.
Being too conservative. If your reorder point is too high, you’re carrying excess inventory and tying up cash. Too low, and you run out. The calculation gives you a baseline; refine it over time as you see how your supplier actually performs.
Setting it and forgetting it. Your production volume changes with the seasons. Demand spikes before the holidays. Suppliers change their lead times. Build in a review — once a quarter, or when you notice your buffer consistently getting eaten into.
How to Set Reorder Points in Craftybase
Once you’ve run the calculation for each material, the next step is making sure you actually get alerted when you hit that level. Tracking reorder points manually in a spreadsheet works — until it doesn’t. They get out of date, formulas break, you forget to check.
Craftybase has reorder alerts built in for exactly this reason. Here’s how to set them up:
- Go to your Materials list and open the material you want to track.
- Find the Reorder Point field in the material settings and enter your calculated number (e.g., 9450 for 9,450g of lye).
- Set the Reorder Quantity — how much you typically order when you restock. This is optional but useful for generating purchase orders.
- Save. Craftybase will now flag this material on your dashboard when stock falls to or below your reorder point.
Your dashboard gives you a live view of which materials need attention, so you can see at a glance if anything is approaching its trigger level — without manually checking every line in a spreadsheet. This is the kind of manufacturing inventory management system that pays for itself the first time it stops you from going out of stock mid-production.
Pair reorder alerts with the stockout prevention strategies that cover what to do when your system catches a problem, and you’ve got a solid loop: calculate, set, get alerted, act.
Adjusting Reorder Points Over Time
Your first reorder point calculation is a starting point, not a final answer. Treat it as a hypothesis and refine it as you get more data.
A few signals that your reorder point needs adjusting:
- You keep getting deliveries while you’ve still got plenty of stock — your reorder point might be too high.
- You’re regularly eating into safety stock before orders arrive — too low, or your supplier’s lead time has increased.
- You’ve scaled production — your average daily demand has changed, so the whole formula needs updating.
Review each material’s reorder point at least twice a year, or any time a supplier changes their lead time. It takes five minutes per material and saves hours of chaos later.
Frequently Asked Questions
What is a reorder point and how do I calculate it?
A reorder point is the inventory level that triggers a new purchase order — calculated as (Average Daily Demand × Lead Time in Days) + Safety Stock. For example, a soap maker using 450g of lye per day with a 14-day supplier lead time and 3,150g safety stock would set a reorder point of 9,450g. When lye drops to that level, it's time to order more. Craftybase tracks your stock levels and alerts you automatically when you hit your reorder point.
What's the difference between safety stock and a reorder point?
Safety stock is the buffer inventory you keep on hand as a reserve against late deliveries or demand spikes — it's the amount you never intend to use under normal conditions. The reorder point is the trigger level that includes that buffer. Your reorder point is always higher than your safety stock because it also covers the inventory you'll use during the supplier's lead time. If you only reorder when you hit safety stock levels, your next delivery will arrive after you've already run out.
How do I calculate reorder points if my sales vary by season?
Use a seasonal average daily demand rather than an annual one. Look at your busiest quarter — say, November and December for holiday makers — and calculate demand for that period separately. Set a higher reorder point before peak season starts, then drop it back down afterward. The formula stays the same; you're just plugging in a more accurate demand figure for the time of year. Review and update your reorder points at least twice a year to keep them aligned with your production rhythm.
Does Craftybase calculate reorder points automatically?
Craftybase lets you set a reorder point value on each material, then alerts you on your dashboard when stock falls to or below that level. You calculate the number once using the formula above, enter it into the material settings, and Craftybase handles the monitoring. It won't automatically place orders for you, but it makes sure you never miss the trigger — which is where most spreadsheet-based tracking breaks down.
How often should I review and update my reorder points?
Review your reorder points at least twice a year, or whenever something significant changes — a supplier updates their lead time, your production volume scales up or down, or you notice you're consistently eating into safety stock before orders arrive. The first calculation is a starting point. Real-world data makes it sharper over time. Build a reminder into your quarterly business review and it takes five minutes per material.
Stop Guessing. Start Knowing.
Running out of materials isn’t bad luck. It’s a missing number — one you can calculate in about three minutes per material.
Work out your average daily demand. Check your supplier’s actual lead time from past invoices. Add a week’s safety stock. That’s your reorder point. Put it into Craftybase and let the system watch your stock levels so you don’t have to.
The goal isn’t perfect forecasting. It’s knowing before you run out — with enough time to do something about it.
Try Craftybase free for 14 days and set up reorder alerts for your materials today. No credit card needed.
