StockMitra

Inventory metrics

Stock cover vs reorder point

Stock cover tells you how long current inventory can last. Reorder point tells you the quantity level where you should place the next order.

What stock cover means

Stock cover measures time. It answers: how many days can current stock support normal usage?

Stock cover = current stock / average daily usage.

If you have 240 units and use 20 units per day, stock cover is 12 days.

What reorder point means

Reorder point measures quantity. It answers: at what stock level should we reorder?

Reorder point = lead time demand + safety stock.

If lead time demand is 126 units and safety stock is 90 units, reorder point is 216 units.

Key difference

Stock cover helps you understand urgency in days. Reorder point helps you decide the action threshold in units.

  • Use stock cover for quick planning and owner visibility.
  • Use reorder point for item-level purchasing rules.
  • Use both when stockouts are costly.

Example in a small shop

A product has 300 units available and sells 25 units per day. Stock cover is 12 days. Supplier lead time is 8 days, and the owner wants a 4-day buffer.

  • Lead time demand: 25 x 8 = 200 units.
  • Safety stock: 25 x 4 = 100 units.
  • Reorder point: 300 units.

The item has 12 days of cover, but it is already at reorder point.

Which metric should you watch?

Watch stock cover daily for fast-moving items. Review reorder point whenever supplier lead time, demand, or safety buffer changes.

Open stock reorder calculator