A reorder point is the stock level at which you place a new order so goods arrive before you run out. For clothing, it is best set by style and size, not for the whole range at once.

The basic idea

Reorder point equals average daily sales multiplied by lead time, plus a safety buffer. If you sell about two units of a size per day and the lead time is 30 days, you need about 60 units covered, plus the buffer.

Gather the inputs

• Sales per style, colour and size over a recent period.
• Supplier lead time, including shipping.
• Any known seasonal change in demand.

Add a safety buffer

Sales are rarely steady and deliveries can slip. A buffer covers both. Fast-moving core styles usually need a larger buffer than occasional items.

Treat sizes separately

Middle sizes often sell out first. Setting one reorder point for a whole style can hide the fact that medium is gone while extra large is still sitting on the shelf.

Review regularly

Check reorder points before each season and after promotions. Remove or lower them for styles you plan to discontinue.

Keep it practical

A simple spreadsheet with sales, stock on hand, lead time and reorder point is enough to start. Improve it as your data grows.

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