Inventory glossary

What is Reorder trigger?

A reorder trigger is the stock level or event that tells a store it is time to place a new order for a product.

A reorder trigger stops you from checking inventory every day by hand. Once it is set correctly, you know exactly when a product needs reordering, instead of guessing or reacting after you are already out of stock.

To use it, calculate the trigger per SKU based on how fast it sells and how long the supplier takes to deliver. Review it regularly, since a trigger based on old sales numbers will fire too early or too late once demand changes.

Formula

Reorder trigger = (Average daily sales x Lead time) + Safety stock

Example

A candle shop sells 6 units a day of its best scented candle. The supplier lead time is 5 days, and the shop keeps 10 units of safety stock. The reorder trigger is set at 6 x 5 + 10 = 40 units. When stock drops to 40, the shop places a new order.

Common mistakes

  • Setting the trigger once and never updating it as sales pick up or slow down.
  • Forgetting to include supplier lead time, so the trigger fires too late.
  • Using the same trigger level for all SKUs regardless of how fast each one sells.

Reorder trigger and SteadyShelf

SteadyShelf watches sales and lead times per SKU and flags an order-by date so you know when a reorder trigger has been hit, without you tracking stock levels by hand.

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

Related terms

Reorder point · Lead time · Safety stock · Reorder quantity · Low stock threshold

Full inventory glossary

FAQ

Is a reorder trigger the same as economic order quantity?

No. Economic order quantity sets how much to order once the trigger fires. The reorder trigger only decides when to order. A store can use a trigger without ever calculating an EOQ, and just order a fixed case pack instead.

Should a reorder trigger be based on stock on hand or stock on hand plus incoming orders?

Stock on hand plus any incoming stock already ordered. If you ignore incoming stock, you can trigger a reorder you do not actually need yet.

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