Accounting Dictionary - Letter R

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Reorder point
(also called reorder level of stock) is an inventory level at which a new order should be placed or setup started to replenish the current stock of inventory. Reorder point equals the lead time demand plus safety stock (i.e., if the lead time demand is not certain). The lead time demand equals the lead time multiplied by the average usage per unit of lead time.
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