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The stock level that triggers a new purchase or production order.
The reorder point is the inventory level at which you place a replenishment order so new stock arrives before you run out. It accounts for how fast you sell and how long resupply takes.
A well-tuned reorder point keeps you in stock without over-ordering, and is the backbone of automated replenishment suggestions.
ROP = (Average daily demand × Lead time) + Safety stock
Add safety stock to cover variability during the lead time.
See it in AWRA OpsHub
Smart Alerts
A buffer of extra inventory held to protect against demand or supply variability.
The total time between placing an order and receiving the goods.
The order size that minimises the combined cost of ordering and holding stock.
Running out of an item so demand cannot be fulfilled.