Solution
Minimum stock: definition, formula and practice
The minimum stock (also called the reorder point) is the stock level at which you must reorder so the remaining supply lasts until the delivery arrives. The common formula: minimum stock = daily consumption × replenishment lead time (in days) + safety stock. Maintain it per item and you buy in time — instead of facing empty shelves or tying up too much capital.
Last updated: · Lavesy editorial team
Sound familiar?
- Reordering happens by gut feeling – sometimes too late, sometimes far too much.
- The term gets mixed up with reorder point and safety stock.
- Without a system, nobody notices when an item drops below the threshold.
How Lavesy helps
Minimum stock per item
Set the threshold once – Lavesy monitors it automatically with every posting.
A warning instead of a surprise
If an item falls below minimum stock, you see it immediately on the dashboard.
Automatic reordering
On request, Lavesy creates the order draft with your preferred supplier.
Target stock as the goal
Replenishment fills up to the target stock – the order quantity follows automatically.
How it works
- 1Estimate consumption per item (e.g. 5 pieces per day).
- 2Take the supplier’s replenishment lead time (e.g. 4 days).
- 3Add safety stock for fluctuations (e.g. 10 pieces): 5 × 4 + 10 = 30.
- 4Enter a minimum stock of 30 in Lavesy – the monitoring does the rest.
Frequently asked questions
What is minimum stock?
The stock level at which you must reorder so the supply lasts until delivery. Formula: daily consumption × replenishment lead time + safety stock.
What is the difference between minimum stock and reorder point?
In practice the two terms are mostly used interchangeably: the threshold that triggers a reorder.
What is the difference between minimum stock and safety stock?
Safety stock is the emergency reserve for fluctuations and enters the minimum-stock formula as a summand; the minimum stock is the trigger threshold for reordering.