order point

order point definition - business

order point

The inventory level at which an order is automatically placed for additional stock. The order point depends on the expected level of sales, the time required to obtain new stock, and the amount of safety stock that is desired.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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