Reorder Point (ROP) is the predetermined inventory level that signals the purchase of replenishment stock before an out-of-stock situation occurs. Formula: Reorder Point = Lead Time Demand + Safety Stock. Lead Time Demand = Average Daily Sales × Supplier Lead Time (Days).

Due to frequent transport disruptions (monsoon landslides, highway repairs, festive customs backlogs), workshops use the Max-Variance formula: Safety Stock = (Maximum Daily Sales × Maximum Lead Time) − (Average Daily Sales × Average Lead Time). This guarantees buffer stock during worst-case delays.

Reordering below ROP causes stockouts. When customers visit your store or factory and find goods unavailable, you suffer lost sales revenue, forfeit customer trust to competing vendors, and incur emergency high-cost rush freight to restock.

ROP parameters should be reviewed seasonally. In Nepal, apparel demand spikes dramatically during Baishakh (new school session admissions) and Ashwin/Kartik (Dashain & Tihar festival shopping). During these peak seasons, average daily sales parameters must be adjusted upwards.

ByaparOS continuously evaluates current on-hand stock and incoming purchase orders against each SKU's calculated Reorder Point. When stock crosses the threshold, automated WhatsApp alerts are sent to managers, and a 1-click Purchase Order draft is prepared.