reorder point

reorder point definition - business

reorder point

The inventory level at which a reorder is placed automatically. The reorder point is a function of the minimum acceptable amount of inventory, the daily consumption of inventory, and the amount of time required between when an order is placed and inventory is received.

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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