← Back to glossary Category: Operațional · Acronym: ROP Reorder Point (ROP) Quick answer: The stock level at which a new order must be placed to avoid a stockout before goods arrive. Key takeawaysAverage demand and its variabilityReal supplier lead timeTarget service level (fill rate) What the reorder point is Reorder point (ROP) is the stock threshold at which a replenishment order is triggered. Classic formula: ROP = (average daily demand × lead time in days) + safety stock. Why it matters A well-calibrated ROP maintains availability without overstocking. Set too low → stockouts and lost sales; too high → locked capital and dead stock. What drives ROP Average demand and its variability Real supplier lead time Target service level (fill rate) How Azuvio helps Azuvio computes ROP dynamically per SKU using real demand and measured lead time, and can automatically trigger orders or order proposals when stock hits the threshold. Frequently askedIs ROP fixed or does it change?It should be recalculated periodically. Demand and lead time vary seasonally, so a fixed ROP quickly becomes wrong. Azuvio recalculates it dynamically.Difference between ROP and safety stock?Safety stock is the buffer for variability; ROP is the total threshold (lead-time consumption + safety stock) at which you order. Where Azuvio fitsSoftware OMSSoftware WMSConectori ERP Related termsLead time — The total time between placing a replenishment order and the goods becoming actually available for sale.Safety stock — Extra buffer inventory held to prevent stockouts caused by demand or supply variability.Economic Order Quantity (EOQ) — The optimal order quantity that minimises the combined total of ordering and holding costs.Replenishment — Automatically refilling picking locations from reserve stock to prevent stockouts during picking. Last updated: 2026-07-06