Table of Contents
- How to Spell “Reorder” Correctly (Quick Answer)
- Why Your Reorder Process Matters More Than Spelling
- What Is Economic Order Quantity (EOQ) and How Does It Work?
- What Is Just-In-Time (JIT) Inventory and When Should You Use It?
- How to Set Up a Min-Max Reorder Point System
- What Is Vendor-Managed Inventory (VMI) and Should You Use It?
- How Kanban Systems Trigger Automatic Reordering
- How AI-Powered Demand Forecasting Optimizes Reorder Points
- What Is Continuous Review (Q,r Policy) Inventory Management?
- How Periodic Review Inventory Systems Work
- How to Choose the Best Reorder Strategy for Your Business
- How to Make Customer Reorders Effortless
- Key Takeaways: Reorder Spelling and Strategy
- Frequently Asked Questions
- Is it “reorder” or “re-order”?
- What’s the difference between reorder point and reorder quantity?
- How do I calculate my reorder point?
- What’s the best reorder strategy for small businesses?
- How does Checkout Links help with reordering?
- Can I use multiple reorder strategies at once?
- What’s safety stock and why do I need it?
- How often should I review my reorder settings?
- What metrics should I track for reorder optimization?

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If you’ve ever second-guessed whether to write “reorder” or “re-order,” you’re not alone. It’s one of those spellings that feels ambiguous, especially when you’re typing fast and your autocorrect keeps changing it. The short answer is that “reorder” (one word, no hyphen) is the standard modern spelling for both the verb and the noun in American and British English.
But if you’re running a Shopify store or managing inventory for any e-commerce business, the spelling is actually the least interesting part of “reorder.” What matters more is building a system that makes reordering inventory efficient and making it effortless for customers to reorder products they love. This guide covers both: first, we’ll settle the spelling question, then we’ll walk through eight proven inventory reorder strategies that can transform how you manage stock.
How to Spell “Reorder” Correctly (Quick Answer)
Use “reorder” as one word. That’s it. Whether you’re talking about placing a new order for inventory (“We need to reorder those phone cases”) or a customer buying again (“She wants to reorder her favorite shampoo”), the modern convention is to drop the hyphen.
Why the confusion? The hyphenated form “re-order” was common decades ago, especially in formal business writing. Some older style guides and British sources still show it. But language evolves. Today’s dictionaries (Merriam-Webster, Oxford, Cambridge) all list “reorder” as the primary spelling. You’ll see “re-order” occasionally in archived documents or very formal contexts, but it looks dated now.
When might you use a hyphen? Only when you’re emphasizing the re- prefix to avoid confusion with a different meaning. For example, if you wanted to say “I need to re-order these files alphabetically” (meaning to order them again in a different sequence), you could use the hyphen to clarify. But in inventory and e-commerce contexts, “reorder” without the hyphen is unambiguous.
Bottom line: Stick with “reorder” and you’ll be correct every time.
Why Your Reorder Process Matters More Than Spelling
Getting the spelling right is trivial compared to getting your reorder process right. If you’re managing a store, poor reordering leads to stockouts (losing sales because you’re out of popular items) or overstock (tying up cash in products that sit in your warehouse). Research shows retail inventory accuracy averages only 63% in the U.S., which means most stores are constantly playing catch-up.
Smart reorder systems solve this by answering two questions automatically:
1. When should you place a new order?
2. How much should you order?
The answers depend on your sales patterns, lead times, storage costs, and supplier relationships. Below are eight strategies businesses use to nail these decisions.
What Is Economic Order Quantity (EOQ) and How Does It Work?
What it is: Economic Order Quantity (EOQ) is a mathematical model that calculates the best number of units to order each time so your total costs (ordering costs + holding costs) are minimized. It’s been around since 1913 and still works great for products with stable demand.
How it works: You plug three numbers into a formula:
Variable | What It Means | Example |
D | Annual demand (units sold per year) | 6,000 cases |
S | Cost per order (shipping, processing fees) | $50 |
H | Holding cost per unit per year (storage, insurance, spoilage) | $2/month |
The formula gives you the sweet spot order quantity. For example, if ordering costs are high, EOQ tells you to order larger batches less often. If storage costs are high, it recommends smaller, more frequent orders.
Why it’s useful: EOQ minimizes waste. You avoid both the cash drain of excess inventory and the lost sales of stockouts. Research shows that EOQ balances holding, order, and shortage costs to find the most economical order size.
Limitations: The model assumes demand is constant and predictable. If you sell seasonal products or have erratic demand spikes, EOQ alone won’t cut it. You’ll need to pair it with safety stock or adjust the parameters regularly.

Example: A retailer selling phone cases might use EOQ to determine they should order 500 cases at a time. That quantity balances their $50 shipping fee per order against the $2/month storage cost per case, given they sell 6,000 cases annually.
What Is Just-In-Time (JIT) Inventory and When Should You Use It?
What it is: Just-In-Time (JIT) is a lean inventory approach where you order stock exactly when it’s needed for production or sale. No earlier. The goal is to eliminate storage waste by keeping almost zero inventory on hand.
How it works: You synchronize orders with actual sales or production triggers. When a sale happens (or a manufacturing run begins), that event triggers a purchase order to your supplier. Over time, tight relationships with reliable suppliers keep the flow smooth.
The JIT promise: Slash inventory carrying costs because you’re not paying for warehouse space or tying up cash in stock. It also reduces obsolescence.
Risks: The biggest danger is supply chain disruption. A single shipping delay or supplier hiccup can cause stockouts because you have no buffer. JIT requires excellent demand forecasting and rock-solid vendor partnerships.

Best for: Businesses with predictable processes and reliable suppliers. Manufacturing with firm orders is a classic use case. E-commerce stores with drop-shipping arrangements can also mimic JIT by never holding inventory themselves.
How to Set Up a Min-Max Reorder Point System
What it is: The Min-Max method (also called Reorder Point system) sets two inventory thresholds for each product:
- Minimum (reorder point): When stock hits this level, trigger a new order
- Maximum: Order enough to bring inventory back up to this level
How it works: When your available stock drops to the minimum, your system automatically creates a purchase order for enough units to reach the maximum. For instance, if your min is 100 units and max is 300 units, you’d order 200 units when you hit 100.
Benefits: It’s simple and works beautifully with inventory software. You always maintain a safety buffer (the gap between min and max) to handle demand variability. Shopify’s guide explains that when stock falls to the set minimum, the system can auto-generate a purchase order.
Considerations: You need accurate data on lead times (how long suppliers take to ship) and demand rates. If those numbers are off, you might still get stockouts. This method is ideal for fast-moving or high-value items where running out is costly.
Example: A beauty store sets a min of 50 units and max of 150 units for their bestselling moisturizer. When stock hits 50, the system orders 100 more. They never run out, but they also never overstock.
What Is Vendor-Managed Inventory (VMI) and Should You Use It?
What it is: In a Vendor-Managed Inventory (VMI) arrangement, your supplier monitors your inventory levels and decides when and how much to reorder on your behalf. You share real-time sales data with them, and they keep your shelves stocked.
How it works: Both parties agree upfront on target stock levels, order frequency, and performance metrics. The vendor uses your sales data (often via shared systems) to plan shipments. They optimize quantities to avoid shortages and overstock for you.
Benefits: VMI reduces your workload and can cut costs for both sides. Suppliers get better demand visibility for their production planning, and you get consistent stock without manual ordering. Research indicates that VMI can improve supply chain responsiveness and agility.
Challenges: VMI requires trust. You’re sharing sensitive sales data, and suppliers must have the systems and expertise to act on it. Clear service-level agreements are essential. If the vendor’s forecasts are wrong, you pay the price in stockouts or excess inventory.

Best for: Staple goods with stable demand. Large retailers like Walmart use VMI extensively with key suppliers for everyday products.
How Kanban Systems Trigger Automatic Reordering
What it is: Kanban is a visual system (originally from Toyota) that uses physical or digital signals to trigger reorders. The most common version is a two-bin system: when the first bin is empty, that’s your signal to reorder.
How it works: Each product has kanban cards or dual bins. When workers empty the primary bin, they move a card or empty bin to a “reorder” board. That signal prompts a purchase order. Only when stock is consumed does the system take action, matching supply directly to usage.
Benefits: Kanban enforces lean inventory. You only order what was actually used, so holding costs drop naturally. It’s also easy to grasp physically (anyone can see an empty bin) and highlights process bottlenecks. This approach avoids purchasing more than needed and allocating space for excess inventory.
Use case: Imagine a workshop with two bins of screws, each holding 100 screws. When a worker empties Bin A, they attach its empty indicator to the kanban board. That signals purchasing to order 100 more screws. Bin B is still full, so production doesn’t stop. This cycle prevents overproduction.
Best for: Manufacturing, assembly lines, or any environment where visual management works well. Also useful for low-complexity retail with a small number of SKUs.
How AI-Powered Demand Forecasting Optimizes Reorder Points
What it is: Modern inventory systems use machine learning to predict demand and dynamically adjust reorder points and quantities. Instead of static formulas, algorithms continuously learn from sales data, trends, seasonality, and external factors.
How it works: Advanced platforms collect historical sales, market signals, and external data (like promotions, weather, economic indicators). Algorithms analyze patterns and generate probabilistic forecasts for each SKU. These forecasts drive dynamic reorder points. If lead times lengthen, the system automatically raises safety stock.
McKinsey research from November 2024 found that AI-enabled demand planning can cut inventory by 20–30% while boosting service levels.
Considerations: These tools require quality data and often integrate with cloud ERP systems. Smaller businesses can start with simpler statistical models (like moving averages) and graduate to full AI-driven software as they scale.
Who’s using it: Most distributors are exploring AI for planning, according to McKinsey’s findings. Large e-commerce operations and retailers with thousands of SKUs benefit most, but mid-size businesses increasingly have access to affordable AI forecasting tools.
What Is Continuous Review (Q,r Policy) Inventory Management?
What it is: Continuous Review (also called (Q,r Policy)) means you track inventory in real time, and whenever stock falls to a specific reorder point (r), you automatically order a fixed quantity (Q). This is the most responsive form of reorder system.
How it works: You set a reorder point based on expected demand during lead time plus safety stock. Inventory is monitored continuously (via software or barcode scanners). When available inventory equals the reorder point, the system triggers an order of quantity Q. Often Q is determined using EOQ.
Benefits: This system responds instantly to demand, minimizing stockout risk. It’s fully automated and adapts to fluctuations in real time. Industry analysis explains that the reorder point typically equals average sales per day times lead time in days, plus safety stock.
Drawbacks: Continuous review requires sophisticated tracking systems. Managing many items this way can be complex. Also, if demand forecasting is poor, continuous review won’t save you from stock issues.
Best for: High-priority or fast-moving items where downtime is expensive. B2B suppliers and e-commerce stores with tight margins often use continuous review for their top sellers.
How Periodic Review Inventory Systems Work
What it is: Periodic Review (also called a P system) means you check inventory levels at fixed intervals (like every Monday) and order up to a target level each time. You’re not continuously monitoring between reviews.
How it works: For each product, set a review interval and a target inventory level S. On review day, count current stock and place an order to raise it back to S. For example, if your target is 500 units and you have 150, you order 350.
Benefits: Periodic systems are simpler to manage, especially without real-time tracking. They’re predictable (orders come at known times) and easier on staffing (dedicated ordering day). Marketing automation can help schedule these reviews and trigger notifications.
Trade-offs: The downside is stockout risk between reviews if demand spikes unexpectedly. You must build more safety stock because you might go to zero before the next review. Also, periodic review can tie up cash in larger batch orders.

Best for: Small businesses or slow-moving items where constant monitoring isn’t justified. Many companies use periodic review for low-value items while reserving continuous review for high-priority SKUs.
How to Choose the Best Reorder Strategy for Your Business
No single method fits every situation. In practice, most businesses use hybrid approaches. Here’s how different strategies map to common scenarios:
Product Type | Best Strategy | Why It Works | Watch Out For |
Stable high-volume items | EOQ + Continuous Review | Predictable demand, automated triggers | Seasonal shifts |
Seasonal/unpredictable | Periodic Review + larger safety stock | Avoids over-ordering | Stockouts between reviews |
Long lead times | Higher reorder points + safety buffers | Protects against delays | Ties up cash |
Collaborative suppliers | VMI + shared forecasting | Reduces your workload | Requires trust & data sharing |
Small, fluctuating items | Kanban or Min-Max | Visual simplicity, just-in-time | Limited to simple SKUs |
The key is automation. Modern inventory software can handle any of these policies. For Shopify stores, you can use built-in inventory features or apps to set reorder points, automate purchase order creation, and integrate with suppliers.

How to Make Customer Reorders Effortless
While we’ve focused on inventory reordering (buying stock from suppliers), there’s another side to “reorder” that directly impacts revenue: customer reordering (when customers buy the same products again).
If you make it friction-free for customers to reorder their favorite products, you boost repeat purchase rates. Smart checkout link tools specialize in this.
When a customer comes back, Checkout Links can prefill their previous cart and shipping address so they can literally click once to complete the order. The platform creates smart URLs that direct shoppers to a pre-configured purchase flow.
For example, you could email a VIP customer a personalized link. That link already includes their last order’s items, applies a loyalty discount, and pre-fills their shipping info. The customer just confirms payment. No searching the store, no re-entering addresses, no hunting for discount codes.
Similarly, abandoned-cart recovery emails can include a checkout link that repopulates the cart plus adds a time-sensitive discount. These techniques blend inventory strategy (ensuring you have stock to sell) with conversion tactics. Smart checkout links simplify reordering for returning customers and boost conversions.
Other features that make customer reorders easier:
① One-click reorder buttons in customer accounts
② Subscription options for consumables (auto-reorder monthly)
③ Personalized product recommendations based on purchase history
④ Quick reorder links in transactional emails

When you combine smart inventory reordering with seamless customer reordering, you create a flywheel: your stock levels stay optimized, and customers keep coming back because it’s so easy.
Key Takeaways: Reorder Spelling and Strategy
On spelling:
Use “reorder” (one word, no hyphen) in modern writing. It’s the standard for both inventory management and customer purchases.
On inventory strategy:
- Mix approaches. The best reorder system often combines methods. Use EOQ and continuous review for core items, periodic review for the rest, and JIT or kanban where practical.
- Automation is critical. Real-time inventory tracking and smart systems (AI forecasting, integrated ERP) eliminate human error and free up your time.
- Monitor and adjust. Regularly revisit your reorder points, min-max levels, and forecast algorithms. Demand patterns change, and your system must evolve too.
- Safety stock matters. Almost every strategy benefits from a buffer. Even JIT should include a tiny safety stock for demand spikes, and periodic review needs extra stock for the review interval.
- Optimize with data. Track metrics like stockout frequency, inventory turnover, and carrying costs. McKinsey found that AI forecasting can lower inventory by roughly 20–30% through better data-driven ordering.
On customer experience:
- Make reordering effortless with one-click options, personalized links, and subscriptions.
- Smart checkout links can transform repeat purchases into single-click conversions.
- Combine your inventory reorder strategy with customer reorder features to maximize both efficiency and revenue.

By mastering inventory reorder strategies, you transform stock management from a constant headache into a competitive advantage. Whether you adopt classic models like EOQ or cutting-edge AI tools, the goal is the same: having the right products in stock at the right time, with minimal waste. And by making it easy for customers to reorder their favorites, you turn good inventory management into great revenue growth.
Frequently Asked Questions
Is it “reorder” or “re-order”?
It’s “reorder” (one word, no hyphen). This is the modern standard spelling in both American and British English. While “re-order” with a hyphen was used historically and still appears in some older texts, dictionaries now list “reorder” as the primary form. Only use the hyphen if you need to emphasize the prefix for clarity in rare contexts (like “re-order these files alphabetically” to mean ordering them again in a new sequence).
What’s the difference between reorder point and reorder quantity?
The reorder point is the inventory level that triggers a new order. For example, when stock drops to 50 units, you place an order. The reorder quantity is how much you order when you hit that point (for instance, 200 units). Reorder point answers when to order, while reorder quantity answers how much to order. They’re often calculated together using formulas like EOQ.
How do I calculate my reorder point?
The basic formula is: Reorder Point = (Average Daily Sales × Lead Time in Days) + Safety Stock. For example, if you sell 20 units per day, your supplier takes 5 days to deliver, and you want 50 units of safety stock, your reorder point is (20 × 5) + 50 = 150 units. When inventory hits 150, place a new order.
What’s the best reorder strategy for small businesses?
For most small businesses, a Min-Max (Reorder Point) system is the sweet spot. It’s simple to set up with basic inventory software, automatically triggers orders, and maintains a safety buffer. Pair it with periodic reviews for slower-moving items. As you grow, you can add EOQ calculations for high-volume products or explore AI forecasting tools.
How does Checkout Links help with reordering?
Checkout Links creates smart URLs that prefill a customer’s cart, shipping info, and discounts. When customers click these personalized links (sent via email, SMS, or other channels), they can complete a repeat purchase in one click without re-entering information.
This is especially powerful for VIP reorders, abandoned cart recovery, and subscription-style purchases. It turns customer reordering from a multi-step process into a single-click conversion.
Can I use multiple reorder strategies at once?
Absolutely, and most businesses should. Use EOQ or continuous review for your bestsellers where accuracy matters most. Apply periodic review to low-value or slow-moving items. Consider JIT or kanban for products with reliable suppliers and predictable demand. VMI might work for staple goods from key vendors. Mixing strategies lets you optimize each product category differently.
What’s safety stock and why do I need it?
Safety stock is extra inventory you keep on hand to absorb demand variability and supplier delays. It’s your buffer against stockouts. For example, if your average demand is 100 units per week but sometimes spikes to 130, safety stock covers that 30-unit gap. Most reorder strategies (EOQ, min-max, continuous review) include safety stock in their calculations to reduce risk.
How often should I review my reorder settings?
At minimum, review quarterly. Check your reorder points, safety stock levels, and order quantities against actual sales data and lead times. If you notice frequent stockouts or excess inventory, adjust immediately. Seasonal businesses should review before each season. If you’re using AI forecasting, the system auto-adjusts continuously, but you should still audit the results monthly to ensure the algorithms are performing well.
What metrics should I track for reorder optimization?
Focus on:
- Stockout frequency: How often you run out of stock
- Inventory turnover ratio: How quickly you sell through inventory (higher is usually better)
- Carrying costs: Total cost of storing inventory (rent, insurance, spoilage)
- Order fill rate: Percentage of orders fulfilled completely without backorders
- Days of inventory on hand: How many days your current stock would last at current sales rate
- Reorder lead time accuracy: How often suppliers deliver on time
These metrics help you fine-tune reorder points and quantities over time. Track them to optimize your conversion funnel.