Skip to content

Glossary

Reorder level

The stock quantity at which a fresh order should be placed so that the item does not run out.

The reorder level is the point at which you buy again. Set it too low and the item runs out before the new lot arrives; set it too high and money sits on the shelf.

A simple way to set it

Reorder level = average daily use × supplier lead time in days + safety stock

A hardware store sells about 12 half-inch ball valves a day. The supplier delivers in 5 days. The owner keeps 3 days of safety stock.

Reorder level = 12 × 5 + 12 × 3 = 96 pieces

When stock on hand falls to 96, the order goes out.

Things that change it

Season
pump makers in Rajkot and Coimbatore build stock months before summer, so their reorder levels for copper wire rise in winter.
Lead time
imported or outstation material needs a higher level.
Minimum order quantity
a supplier that ships only full bundles changes how much you order, though not when.

Review

Reorder levels should be checked every few months against actual sales. Items that never reach their level are candidates for dead stock; items that often run out need a higher one.

The MatruOS Home screen shows low stock, so items running short are seen the same day.

Run the whole business on one system Set up for your trade.

Describe your business once. MatruOS sets up your apps, brings in your data and puts Muni and the AI team to work, with your approval on every step that matters. 7-day free trial, no card needed.

See plans and what each includes
Chat with the MatruOS team on WhatsApp, +91 97234 99901