Re Order Point Notes: Definitions & Explanations PDF | Download eBooks
Study Re Order Point lecture notes PDF with supply chain management definitions and explanation to study “What is Re-Order Point?”. Study re order point explanation with SCM terms to review supply chain management course for online MBA programs.
Re Order Point Definition:
Point in time at which more items are ordered, usually calculated to ensure that inventory does not run out before the next batch of inventory arrives.
Operations Management by Nigel Slack, Alistair Brandon-Jones, Robert Johnston
Re Order Point Notes:
A reorder point is the unit amount close by that triggers the buy of a foreordained measure of recharging stock. On the off chance that the buying procedure and provider satisfaction fill in as arranged, the reorder point should bring about the recharging stock arriving similarly as the remainder of the close by stock is spent. The outcome is no interference underway and satisfaction exercises, while limiting the aggregate sum of stock available. The reorder point can be diverse for each thing of stock, since each thing may have an alternate utilization rate, and may require contrasting measures of time to get a renewal conveyance from a provider. For instance, an organization can choose to purchase a similar part from two distinct providers; on the off chance that one provider requires one day to convey a request and the other provider requires three days, at that point the organization's reorder point for the primary provider would be when there is one day's supply left available, or three days' supply for the subsequent provider.
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