Flag Inventory Items That Need Reordering

Excel & Google Sheets

How it works

IF checks a condition and returns one value when it's true, another when it's false. Here it compares stock on hand (B2) to the reorder point (C2): at or below the point, the row says Reorder; otherwise OK. Using <= rather than < matters — the reorder point is the level at which you act, so hitting it exactly should trigger the flag. Because the formula recalculates whenever counts change, the status column stays current without anyone checking it.

B2<=C2

The test: is stock on hand at or below the reorder point?

"Reorder"

What to show when the test is true — time to order.

"OK"

What to show otherwise. Both text values need quotes.

When to use it

Use this on any stock list: retail inventory, office supplies, spare parts, packaging materials. Add conditional formatting on the status column so Reorder rows turn red and jump out.

Common mistakes

• ✕Using < instead of <=.

  ✓With =IF(B2<C2,...), an item sitting exactly at its reorder point shows OK. The reorder point is the trigger level, so use <= to flag it.

• ✕Comparing stock counts stored as text.

  ✓Numbers stored as text (often left-aligned) compare as text, giving wrong answers. Convert the column to real numbers, or the test "9"<="50" fails.

• ✕One reorder point hardcoded for every item.

  ✓=IF(B2<=20,...) treats fast and slow movers the same. Keep a reorder point per item in its own column and reference it, as this formula does.