What stock cover means
Stock cover measures time. It answers: how many days can current stock support normal usage?
Stock cover = current stock / average daily usage.
If you have 240 units and use 20 units per day, stock cover is 12 days.
Inventory metrics
Stock cover vs reorder point
Stock cover tells you how long current inventory can last. Reorder point tells you the quantity level where you should place the next order.
What reorder point means
Reorder point measures quantity. It answers: at what stock level should we reorder?
Reorder point = lead time demand + safety stock.
If lead time demand is 126 units and safety stock is 90 units, reorder point is 216 units.
Key difference
Stock cover helps you understand urgency in days. Reorder point helps you decide the action threshold in units.
- Use stock cover for quick planning and owner visibility.
- Use reorder point for item-level purchasing rules.
- Use both when stockouts are costly.
Example in a small shop
A product has 300 units available and sells 25 units per day. Stock cover is 12 days. Supplier lead time is 8 days, and the owner wants a 4-day buffer.
- Lead time demand: 25 x 8 = 200 units.
- Safety stock: 25 x 4 = 100 units.
- Reorder point: 300 units.
The item has 12 days of cover, but it is already at reorder point.
Which metric should you watch?
Watch stock cover daily for fast-moving items. Review reorder point whenever supplier lead time, demand, or safety buffer changes.
Related guide
For the full reorder point formula and a step-by-step example, read the reorder point guide.
Frequently asked questions
What is stock cover?
Stock cover measures how many days current inventory can support normal usage. Stock cover = current stock ÷ average daily usage. For example, 240 units at 20 units per day gives 12 days of stock cover. It answers: how long before you run out?
What is reorder point?
Reorder point is the quantity level at which you should place your next order to avoid stockouts. Reorder point = lead time demand + safety stock. It answers: at what quantity should I reorder?
What is the difference between stock cover and reorder point?
Stock cover answers how many days current stock can last — it measures time. Reorder point answers at what quantity level you should reorder — it measures units. Use stock cover for daily owner visibility and use reorder point for item-level purchasing rules.
Which metric should I watch for inventory management?
Watch stock cover daily for fast-moving items to catch shortages early. Review reorder point whenever supplier lead time, demand patterns, or safety buffer requirements change. Use both metrics together when stockouts carry a high cost.