ECONOMICS

Detailed explanation-1: -Re-order level is the level of inventory which triggers an action to replenish that particular stock. It is a minimum level of stock which a firm need to maintained. Re order quantity is basically depends on the two major element i.e. lead time and average usage.

Detailed explanation-2: -Reorder quantity is the number of products you order from a supplier, where the reorder point is the predetermined number of units you have left on hand at which you need to reorder more inventory from your supplier or you will run out.

Detailed explanation-3: -A reorder point (ROP) is a specific level at which your stock needs to be replenished. In other words, it tells you when to place an order so you won’t run out of stock.

Detailed explanation-4: -Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. Was this answer helpful?

Detailed explanation-5: -The economic order quantity (EOQ) refers to the ideal order quantity a company should purchase in order to minimize its inventory costs.