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reorder point

   Also found in: Dictionary/thesaurus, Acronyms, Wikipedia 0.01 sec.
reorder point [re′ȯr·dər ‚pȯint]
(industrial engineering)
An arbitrary level of stock on hand plus stock due in, at or below which routine requisitions for replenishment purposes are submitted in accordance with established requisitioning schedules.


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Inventory Documents generated would include Goods Received Notes, Material Requisitions from consuming departments, Materials Issue Acknowledgments, Accounting records, Bin Cards, Inventory verification reports, List of reorder points & Goods replenishment requests.
The reorder point is equal to demand through vendor lead-time plus a safety stock factor.
Forecasts materiel demands in order to determine Authorized Stocking Levels (ASL) and reorder points.
 
 
 
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