Reorder level (or reorder point) is the inventory level at which a company would place a new order or start a new manufacturing run.
1. Obaidullah Jan, “Economic Order Quantity (EOQ).” Economic Order Quantity (EOQ) | Definition | Formula | Example. N.p., n.d. Web. 16 May 2017. <http://accountingexplained.com/managerial/inventory-management/economic-order-quantity>. 2. Obaidullah Jan, “Reorder Level.” Reorder Leve...
The reorder point formula is ROP = (lead time x demand rate) + safety stock level. Lead time and sales velocity or consumption are sometimes grouped together into a metric known as lead time demand. Recommendations for implementing reorder points include prioritizing SKUs with which to set them...
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