Question
The level at which a fresh order should be placed for
the replenishment of the stock is known as ______.Solution
The level at which a fresh order should be placed for the replenishment of the stock is known as the "Re-order stock level" or "Reorder Point." The Reorder Point is the inventory level at which a new order should be placed with the supplier to avoid stockouts or shortages. When the stock level falls to or below the reorder point, it triggers a signal for the purchase department to place a new order to replenish the stock and maintain sufficient inventory levels to meet demand during the lead time (time taken for the new order to arrive).
Answer the questions based on the information given below.
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