What is a reorder point?

A reorder point is the stock level at which you place the next purchase order. It equals expected demand over the supplier lead time plus safety stock, so the order lands before the buffer runs out. Hitting it is a trigger to buy, and it has to be recalculated when demand or lead times shift.

Reorder points expire without announcing it. A point set against a four-week lead time keeps firing at the same level after the supplier slips to seven, and the stockout arrives with no warning.

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