Reorder Point Management

Reorder Point Management is a strategy used in inventory management to ensure that a business has enough stock on hand to meet customer demand. The reorder point is the inventory level at which a new order should be placed to replenish stock before it runs out. Businesses calculate this point by considering factors like sales rates and lead times for new shipments. By monitoring this threshold, companies can maintain optimal inventory levels, prevent stockouts, and avoid excess inventory, ultimately improving efficiency and customer satisfaction.