250 is the example result. Read it using the units and relationship stated below.
FBA Reorder Point uses average daily sales, lead time (days), safety stock.
Protecting contribution before accepting a price
For fba reorder point, the relationship is Result = [Average daily sales] × [Lead time (days)] + [Safety stock]. The amount depends on the supplied average daily sales, lead time (days), rather than a live market price or a value imported from another record. A quote can meet a revenue target and still leave too little to cover delivery. Separate the selling-price denominator from the cost denominator: margin and markup answer different questions. A discount changes contribution even when the supplier cost stays fixed.
What the model includes
Result = [Average daily sales] × [Lead time (days)] + [Safety stock] A pricing review should retain the supplier cost, sale price and the reason for any allowance. Returns, payment charges, delivery and tax require explicit treatment; they should not disappear inside a percentage labelled profit. Compare the proposed price with the customer agreement and delivery capacity. A mathematically achievable margin does not establish that buyers will accept the offer.
Example with the supplied inputs
Average daily sales: 20; Lead time (days): 10; Safety stock: 50. Result: 250. The values are illustrative.
Compare one changed input
Average daily sales changes from 20 to 22. The result becomes 270. All other inputs remain fixed.
Calculation rule
Result = [Average daily sales] × [Lead time (days)] + [Safety stock]
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Average daily sales | 20 | Use the source quantity represented by average daily sales. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Lead time (days) | 10 | Use the duration unit stated in lead time (days). A time period is not interchangeable with a currency amount or a count of events. |
| Safety stock | 50 | Use the source quantity represented by safety stock. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 250 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Average daily sales, Lead time (days), Safety stock. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Average daily sales on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 250.
Change Average daily sales from 20 to 22 while keeping every other value fixed. The result becomes 270. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026