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Small Plant Min Max Reorder Point Worksheet

Cloud MRPs such as MRPeasy, Katana and Fishbowl ask you for reorder points, minimums or safety stock on each purchased item. This worksheet calculates them from usage and lead time, so the numbers you enter are reasoned rather than guessed.

Download:

Reorder point	Max level	Below reorder by	Max stock value
228	528	48	$4,435
990	2,990	0	$329
24	74	4	$725
200	700	50	$434
168	288	78	$907

Total max stock value

$6,830

Items below reorder point

Average max value per item

$1,366

Reorder point equals average daily usage times lead time plus safety days. The count under Items below reorder point counts all rows; filter the Below reorder by column after export to see which are actually short.

Usage analysis from your ERP

We can compute reorder parameters from your actual transaction history. Optional.

Optional. The tool and every export work without this. No spam.

How to use it

Enter each item with its average daily usage from the last six to twelve months, the supplier lead time in days, and safety days you want to cover for late deliveries. Add on-hand stock and the order quantity you normally buy. The worksheet returns the reorder point, maximum level, and how far you are below the reorder point today. Export to Excel and use the values to fill planning fields in your new system.

Use real consumption, not forecasts
Measure lead time as order to usable receipt
Set safety days by supplier reliability
Review quarterly

The method

Reorder point equals average daily usage multiplied by lead time plus safety days. Maximum level is the reorder point plus the order quantity. This is a simple min/max method that works well for steady-use items with reliable suppliers. It does not model demand variability statistically, so for erratic or expensive items use a safety stock calculation from standard deviation of demand, or let the MRP plan from actual orders.

Reading the result

Items with a gap above zero are already inside their reorder window and need a purchase now. Compare maximum stock value to your cash limits. If total value is too high, cut order quantity on slow, high-cost items or negotiate shorter lead times. Items that are made to order for a single customer rarely need min/max at all.

Common mistakes

Using purchase quantities as demand, ignoring seasonal spikes, and setting one safety rule for every supplier. A distant supplier with variable transit time needs more safety days than a local distributor. Also remember that MRP-driven planning and min/max can conflict: mark items as one or the other in your system, not both.

Frequently Asked Questions

What is the difference between min/max and MRP planning?

Min/max reorders when stock falls below a fixed level, regardless of upcoming demand. MRP plans from actual sales orders and forecasts. Min/max suits low-cost, steady items; MRP suits items tied to specific jobs.

How do I choose safety days?

Look at how many days late the supplier has been in the past year and pick a value covering most of those cases. Critical single-source parts deserve more than commodity hardware.

Should order quantity be an economic order quantity?

It can be, but many small plants use supplier minimums, pack sizes or price breaks. Use the real buying quantity that you place on the PO.

Can I use this for finished goods?

Yes, for make-to-stock items. Use production lead time as lead time and batch size as order quantity.

Netray can analyze your ERP transaction history to propose usage-based reorder points for every purchased part.

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