Why do relief items run out?
Relief stock is easy to under-order. Demand comes in waves: a flood, a displacement, a season. Orders take weeks. A store officer who waits until shelves look empty has already left it too late. A reorder point gives a clear signal in advance.
What goes into a reorder point?
Three numbers:
- Average daily use. How many units you issue per day, on average. Take it from your issue records over a recent period.
- Lead time. How many days between ordering and goods on the shelf.
- Safety stock. Extra units that cover delays and surges.
Reorder point = (average daily use × lead time) + safety stock.
A worked example
A field store issues about 40 hygiene kits per day during a response. A supplier usually delivers in 10 days from the order, including transport and receiving.
- Use during lead time: 40 × 10 = 400 kits.
- Safety stock: the team decides on 5 extra days of use, so 40 × 5 = 200 kits, because deliveries from this supplier sometimes arrive late.
- Reorder point: 400 + 200 = 600 kits.
When the balance reaches 600, the officer raises a requisition. If the supplier delivers on time, stock arrives when about 200 kits remain. If delivery is five days late, the safety stock covers it.
How do you choose safety stock?
There is no single right figure. Consider:
| Factor | Effect on safety stock |
|---|---|
| Supplier often late | Raise it |
| Demand is uneven or hard to predict | Raise it |
| Item is life-critical | Raise it |
| Item expires quickly | Lower it, or order smaller amounts more often |
| Storage space or funding is tight | Lower it, and accept more risk |
| A second supplier can deliver fast | Lower it |
Write down your reasoning, so the next officer knows why the number is what it is.
What are the common mistakes?
- Using the supplier’s promised lead time, not the real one. Check past orders and use the typical delivery time, plus the slow ones.
- Using a long average for use. If demand has changed this month, last year’s average misleads you.
- Ignoring commitments. Count stock on hand plus open orders when you decide whether to reorder, or you may order twice.
- Forgetting the budget. Your requisition still needs a budget line and approval. Our article on purchase requisitions shows what to include.
- Setting it once. Review each reorder point every few months, or after any big change.
How do you keep the points working?
- List your critical items, such as food, medicines, shelter and hygiene supplies.
- Set a reorder point for each, per store.
- Check balances against the points weekly, or daily in a response.
- Reorder when the balance touches the point.
- After each cycle, compare real lead time and real use with your assumptions, and adjust.
This only works if the stock record is accurate. See our article on warehouse inventory management for keeping it so.
What about items with a shelf life? For food and medicines, a high reorder point can mean expiry on the shelf. Cut the order size, not the safety, by ordering smaller amounts more often, or agree staged deliveries with the supplier. A framework agreement can hold a price while you call off small lots. Our article on framework agreements explains when this helps.
How do you set a first reorder point with little data? If you have no history, start with the best estimate from the programme plan: planned distributions divided by days. Add a generous safety margin, then adjust after the first month as real issue figures come in. A cautious first guess is better than none.
Who decides? The store officer proposes the numbers, the logistics manager approves them, and programme staff confirm the expected demand. Write the date and the reason on each change, so the next review starts from your reasoning and not from scratch.
What if demand drops suddenly? A falling use rate lowers your reorder point, and stock you have already ordered may arrive when you need less. Check open orders when use changes, and talk to the supplier early about delaying or reducing the order. It is easier to adjust before the goods ship. Note the change and the reason on the file, so the decision can be explained later.
Where EMPOBase fits
In EMPOBase, Inventory keeps stock records by location, and Reorder Alerts are part of Logistics & SCM, so low stock can be seen before a store runs out. The reorder levels and safety stock are your decisions, based on your own use and supply. A goods received note does not move stock, so your store staff must update Inventory for alerts to reflect what is on the shelf. See the procure-to-pay workflow for how a reorder becomes an order.