What is Base stock level?

For a small Shopify store, a base stock level gives you a clear number to reorder up to instead of guessing. You set it once per SKU based on how fast it sells and how long your supplier takes to deliver, then every reorder decision becomes simple: bring stock back up to that line.

Use it with a continuous or periodic review system. When stock drops to your reorder point, you order enough to bring the on-hand plus incoming quantity back to the base stock level. Revisit the number when sales pick up, slow down, or your supplier's lead time changes.

Formula

Example

A candle store sells 6 units a day of its lavender jar candle. The supplier's lead time is 10 days, and the store keeps 20 units of safety stock. Base stock level = (6 x 10) + 20 = 80 units. Whenever stock plus incoming orders fall below 80, the store orders enough to get back to 80.

Common mistakes

• Setting the base stock level once and never updating it as sales trends change.
• Ignoring supplier lead time variability, which leaves the buffer too thin during slow shipments.
• Confusing base stock level with reorder point, they serve different purposes in the replenishment cycle.

Base stock level and SteadyShelf

SteadyShelf forecasts daily sales per variant and factors in each supplier's lead time, so it can suggest an order quantity that brings you back up to your base stock level without manual math.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Related terms

Reorder point · Safety stock · Lead time demand · Order up to level · Min max inventory

Full inventory glossary

FAQ