MANAGEMENT

Detailed explanation-1: -The reorder point (ROP) is the level of inventory which triggers an action to replenish that particular inventory stock. It is a minimum amount of an item which a firm holds in stock, such that, when stock falls to this amount, the item must be reordered.

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: -Meaning of order point in English the smallest number of a particular product that a business allows itself to have, before ordering more: The order point depends on the expected level of sales.

Detailed explanation-4: -It is based on the average time taken by the supplier for replenishment, maximum usage of the item during the replenishment time, and safety stock requirement. It is also known as reorder point. The reorder quantity is the quantity of the order that is to be placed on a new purchase order for the particular item.

Detailed explanation-5: -A reorder point is the level of inventory at which a business should place a new order or run the risk that stock will drop below a comfortable level, or even down to zero-leaving customers unhappy and orders unfulfilled. Usually, ROP refers to buying inventory to replenish stock.