Shop stock reorder levels tell you when to check whether it is time to buy more: allow for expected sales while a supplier delivers, plus a buffer for uncertainty. Start with your own sales quantities and delivery experience. This guide shows the calculation, a small-shop example and how to enter the alert in Yojika.
Dussehra falls on 20/10/2026, according to the NRSC government holiday list. If your neighbourhood expects extra purchases, check supplier delivery schedules now; a familiar stock level may be too low when delivery takes longer.
Calculate shop stock reorder levels from three inputs
For an item you check frequently and can order promptly, use this starting point:
Reorder level = expected daily sales × delivery lead time + safety stock.
Delivery lead time means the time from placing the order until the goods are ready to sell. Safety stock is the extra quantity you choose to cover demand swings or delays. Neither figure is a promise that stock will never run out.
| Input | What to look at | Common mistake |
|---|---|---|
| Daily sales quantity | Recent comparable days when the item was available | Treating a day with an empty shelf as normal low demand |
| Delivery lead time | Actual order-to-arrival time, including supplier holidays | Counting only the truck journey |
| Buffer quantity | Extra units for plausible delays and sales variation | Copying one buffer across every item |
Use one unit throughout. If you sell packets but purchase cartons, convert carton quantities to packets before calculating. Start with likely fast sellers rather than changing the whole catalogue at once.
The formula assumes you act promptly. If you check stock only every few days, also allow for sales until the next check. Either include that interval in the time covered or review more often; do not rely on a small buffer to cover a long ordering gap.
A worked example: incense packets in a Mysuru shop
Imagine a Mysuru shop reviewing one incense product before a busy week. These figures are hypothetical planning inputs, not a customer story or a GST rate example.
The owner expects to sell 8 packets a day. The supplier normally takes 3 days from order to usable delivery. She chooses 16 packets as a buffer and checks stock daily before ordering.
| Calculation | Result |
|---|---|
| Expected sales during delivery: 8 × 3 | 24 packets |
| Chosen buffer | 16 packets |
| Reorder level: 24 + 16 | 40 packets |
At 38 usable packets, with no delivery already pending, she checks the supplier and places an order. If sales remain at 8 packets daily, the next 3 days use 24 packets, leaving 38 − 24 = 14 packets before the delivery arrives.
If the supplier now needs 5 days, the same assumptions produce 8 × 5 + 16 = 56 packets. That is a reason to review the alert before a holiday disruption. Increasing the alert does not add stock: with only 38 packets left, she also needs to discuss an earlier delivery or another supply option.
For ordinary taxable sales where both the supplier location and place of supply are Karnataka, CGST and SGST apply, as explained in CBIC’s intra-state supply FAQ, question 85. Confirm the current product classification and rate with your CA before billing; this quantity worksheet supplies no tax rate.
Decide how much to buy separately
The 40-packet alert answers when to review. It does not mean “buy 40 packets”.
Suppose the owner chooses a target of 72 packets to cover expected sales from today through the next planned replenishment, plus her buffer. With 38 usable packets and no incoming stock, the gap is 72 − 38 = 34 packets. If the supplier sells cartons of 12, buying 3 cartons = 36 packets brings stock plus the new order to 74 packets, before further sales.
At an illustrative final payable cost of ₹40 per packet, that order needs 36 × ₹40 = ₹1,440. Check affordability, expiry and storage space before rounding up to a carton.
Now change one assumption: 24 packets are already confirmed to arrive in time. The remaining gap is 72 − 38 − 24 = 10 packets; one carton of 12 may suffice. Check arrival dates before counting incoming goods as cover, and exclude goods already committed to another customer from your available quantity.
Keep that order check beside your low-stock list so the same warning does not produce repeated orders.
Enter the alert in Yojika
On desktop:
- Open Items → Products and find the goods item.
- Double-click its row, or choose Edit from its menu.
- Enter 40 in Low-stock alert for the first example, using the item’s stock unit.
- Save, then use the Low stock chip on the Products tab when reviewing purchases.
That chip includes goods at or below their positive alert quantity, so 40 packets qualifies as well as 38. The value is one you set; calculating demand, choosing a buffer and confirming the supplier order remain your decisions.
Compare the recorded quantity with usable stock before ordering. If they differ, investigate missing entries or damage using the physical stock count guide. For the wider stock-record routine, see managing inventory in a small shop.
Review after the busy period
Write down why you changed each alert: expected demand, delivery days and buffer. After the festival, compare those assumptions with what happened. Lower a temporary alert when demand settles, and investigate repeated shortages before increasing every buffer.
Yojika provides item-level low-stock alerts within its offline-first billing workflow. Explore the inventory and billing features, or download Yojika to try the item setup with your own stock units.
Frequently asked questions
How do I calculate a shop stock reorder level?
Multiply expected daily sales by the supplier’s delivery time, then add a chosen buffer. Use the same unit throughout and allow for delays between checking stock and placing the order.
Is the reorder level the quantity I should buy?
No. It is the stock level that triggers a buying check. Choose an order quantity separately, considering usable stock, confirmed deliveries, expected sales, shelf space and cash.
Should I raise every item’s alert before a festival?
Review likely fast sellers and suppliers whose delivery schedules will change. Raise an alert only when your demand or delivery assumptions justify it, and review it again after the busy period.
Where do I set a low-stock alert in Yojika?
Open Items, edit a goods item, enter its Low-stock alert quantity and save. The Low stock chip on the Products tab includes items at or below a positive alert level.