What is a reorder point?

The stock level that triggers a purchase before you run out.

The reorder point is the on-hand level at which a replenishment order should be raised: enough to cover expected usage during lead time, plus safety stock. Crossing it triggers a requisition, not a scramble.

Reorder points are set per part from usage rate and lead time. When the system watches levels continuously, a stock-out becomes a requisition raised weeks early — not a machine down waiting on a courier.

• How it's used