A reorder point is the stock level at which you should reorder an item so it arrives before you run out.
Calculate reorder point, safety stock, max level, and economic order quantity from your consumption data, lead time, and target service level. Replaces the spreadsheet most materials managers are using, or the gut feeling they're using if they don't have a spreadsheet.
Average consumption during the lead time, plus safety stock. The tool does this from your consumption rate and lead time.
Extra stock that absorbs demand and lead-time variability so a normal spike does not cause a stockout.
They were usually set once and never revisited. Consumption and lead times change, so reorder points drift out of date.