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id: safety-stock title: Buffer Stock & the Reorder Point sidebar_position: 2 type: concept audience: inventory_manager, supply_chain_lead time_to_read: 10min

Buffer Stock & the Reorder Point

Synplex uses a buffer stock setting — measured in days of average demand — to set the safety cushion built into each variant's reorder point. When the simulation projects stock will fall to or below the reorder point, it flags the variant as Low Stock and triggers a recommended order.


How the reorder point is calculated

The reorder point is calculated in units using the average daily demand derived from the demand plan: safetyStock = avgDailyDemand × bufferStockDays reorderPoint = avgDailyDemand × (leadTimeDays + bufferStockDays)

What each term means:

TermSourceDefault
avgDailyDemandTotal 365-day planned demand ÷ 365From demand plan
leadTimeDaysDays from order placement to receipt30 days
bufferStockDaysSafety cushion expressed as days of demand7 days

Example: A variant with an average daily demand of 10 units, a lead time of 30 days, and a buffer of 7 days has: safetyStock = 10 × 7 = 70 units reorderPoint = 10 × 37 = 370 units

When the simulation's running stock level reaches 370 units, the variant is flagged for reorder. If stock is already at or below 370 on Day 0, a recommended order is generated immediately.

The reorder point is recalculated each time metrics refresh, using the latest demand plan and the configured lead time and buffer stock days.


What buffer stock actually protects against

Buffer stock adds days of cushion beyond the pure lead time demand. It absorbs:

  • Supplier delivery arriving a few days late
  • Demand running slightly above the plan during the lead time window
  • Lag between a Shopify sync updating on-hand quantities and metrics recalculating

It is not a statistical safety stock formula (no standard deviation, no service level calculation). It is a simple linear buffer: more days means a higher reorder point and earlier warnings.


Configuring buffer stock days

Global default

Go to Settings → Insight Settings and set the Stock Buffer Days field. This applies to every inventory level that does not have a per-level override.

SettingDefaultEffect
Stock Buffer Days (defaultStockBufferDays)7 daysDays of demand added to lead time in reorder point

Per-inventory-level override

On the product detail page, each inventory level (variant × location combination) can have its own bufferStockDays value set independently of the shop default. Use this when a specific location has consistently unreliable delivery or unusually variable demand that warrants a different cushion from the rest of your catalogue.


How buffer stock days interact with Lead Time Days

Both settings feed into the same formula. Increasing either one raises the reorder point and causes Low Stock to fire earlier:

Lead TimeBuffer StockReorder Point (at 10 units/day)
30 days5 days350 units
30 days7 days370 units
30 days14 days440 units
45 days7 days520 units

If you are seeing too many Low Stock alerts on products that are not actually at risk, reducing buffer stock days (or lead time if it is set too high) will bring the reorder point down. If you are experiencing stockouts before orders arrive, increase buffer stock days.


Buffer stock days vs Purchase Days of Inventory Reach

These are two separate and independent settings that are often confused:

SettingControlsEffect on reorder point
Buffer Stock DaysHow early the reorder point firesDirect — raises the reorder point
Purchase Days of Inventory ReachHow much to order when the reorder point firesNone — only affects order quantity

purchaseDaysOfInventoryReach (default: 90 days) sets how many days of demand the simulation targets when sizing a virtual order. A larger value means larger orders placed less frequently; it has no effect on when Low Stock is triggered.


The order quantity calculation

When the simulation detects stock ≤ reorderPoint, it calculates the order quantity as: orderQty = shortage + (avgDailyDemand × purchaseDaysOfInventoryReach)

Where shortage = max(0, reorderPoint − stock). The result is then rounded up to satisfy the supplier's MOQ and batch size constraints configured on the supplier product record.

This quantity is the Recommended Order Qty shown in the inventory table for each inventory level.


Choosing a buffer stock value

There is no universally correct value. Use the following as a starting reference:

Supplier reliabilityDemand predictability (XYZ)Suggested buffer
Reliable (consistent lead time)X (stable)5–7 days
ReliableY or Z (variable)7–14 days
Unreliable (variable delivery)X10–14 days
UnreliableY or Z14–21 days

The most reliable signal is your own stockout history. If variants are regularly reaching Out of Stock before orders arrive, the buffer is too low for the actual lead time variability. Increase it in increments of 3–5 days and monitor over 2–3 nightly cycles.


What buffer stock days does not do

  • It does not vary automatically by ABC grade — the same setting applies to all variants unless you set a per-level override
  • It does not use demand standard deviation or any statistical service-level calculation
  • It does not affect the Low Stock day threshold (defaultRunningLowDays) — that is a separate setting controlling when the Low Stock status fires based on daysUntilReorder
  • It does not affect the Overstock threshold (defaultOverstockDays)