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      Question

      The level at which a fresh order should be placed for

      the replenishment of the stock is known as ______.
      A Minimum stock level Correct Answer Incorrect Answer
      B Danger level Correct Answer Incorrect Answer
      C Re-order stock level Correct Answer Incorrect Answer
      D Average stock level Correct Answer Incorrect Answer

      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).

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