MANAGEMENT

Detailed explanation-1: -A set inventory level where, if the total stock on hand plus [the stock] on order falls to or below that point, an action is taken to replenish the stock. It’s normally calculated as forecasted usage during the replenishment lead time plus safety stock.

Detailed explanation-2: -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-3: -The reorder point (ROP) is the minimum number of units that a business needs to have in stock to prevent stock outs and ensure order fulfillment. Once inventory levels reach the reorder point, this triggers the replenishment process to reorder that item.

Detailed explanation-4: -Inventory Reorder Point in inventory management is the minimum level of stock for a specific product. Reorder level is the stock level of a specific product and reorder quantity is the number of units to be ordered while placing a new purchase order.