What is Stock Reorder Point (ROP)?
Reorder point = (average daily sales × lead time) + safety stock. Below it, you order. Above it, you wait.
A real Kenyan example
25 units/day × 4 days + 20 safety = ROP of 120 units.
Formula
ROP = (Daily sales × Lead time) + Safety stock
Why it matters
A clear ROP prevents both stockouts and overstock, the two most expensive inventory mistakes.
How Veira helps
Veira sets ROP from your 90-day sales history and sends a WhatsApp alert when stock falls below.
FAQs
Safety stock?
Cushion against demand spikes and supplier delays, set at 25-50% of lead-time demand.
Lead time varies, what to do?
Use the worst-case lead time when setting ROP.
Different from EOQ?
ROP says WHEN to order. EOQ says HOW MUCH.
Should every SKU have an ROP?
Top 80% of SKUs by velocity, yes.
Does Veira automate?
Yes, per SKU and per branch.