A low-stock threshold is not the same as a reorder point

A low-stock threshold answers a simple question: at what number should this product turn amber on my dashboard? A reorder point answers a harder one: at what number do I need to place a purchase order so that new stock arrives before I run out? The second depends on your supplier lead time and how fast the product sells. A candle that sells four a day with a fourteen-day lead time needs a reorder point around sixty units, even if you would not call sixty 'low'. Start by setting the threshold to something you can act on, then track how often you hit zero anyway. If you keep hitting zero, your threshold is working and your reorder timing is not.