Inventory glossary
What is Order up to level?
Order up to level is the target stock quantity a store orders up to each time it places an order, instead of ordering a fixed quantity.
For a small Shopify store this matters when demand per SKU is uneven and a fixed reorder quantity wastes cash or causes stockouts. Setting an order up to level lets you top off stock to a consistent target at each review, which smooths out ordering even when sales swing week to week.
To use it, pick a review interval (weekly, monthly), set a target level based on expected demand during the interval plus lead time plus some safety stock, then each review period order enough to bring stock back up to that target.
Formula
Example
A candle store reviews stock every 4 weeks. It sets an order up to level of 200 units for its best seller, covering 4 weeks of sales plus lead time plus a safety buffer. At review time it has 60 units on hand and 20 units on order. It orders 200 - (60 + 20) = 120 units.
Common mistakes
- Setting the target level once and never adjusting it as sales trends change.
- Forgetting to subtract on-order quantity, which leads to over-ordering.
- Using too long a review interval, which lets stock run low between checks.
Order up to level and SteadyShelf
SteadyShelf forecasts demand per variant and factors in supplier lead time, so it can suggest the order quantity needed to bring stock up to a sensible target each time you review a SKU.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Min max inventory · Par level · Periodic review · Reorder point · Base stock level
FAQ
Is order up to level the same as a reorder point system?
No. A reorder point system orders a fixed quantity whenever stock hits a trigger level. Order up to level is checked on a fixed schedule and the order quantity changes each time to refill to a set target.
How do I pick the right order up to level?
Base it on expected sales during your review period plus lead time, then add safety stock for demand swings or supplier delays. Review and adjust it as sales patterns change.
Let SteadyShelf do this math for every SKU
Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.
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