Reorder Point

Category: Planning

Definition (plain English)

A reorder point is the inventory level where a new purchase order or replenishment action should be triggered.

Why it matters commercially

It connects demand, usable lead time, safety stock, MOQ, supplier order cycles, and import delays so teams do not buy too late or overbuy too early.

Example

A buyer set the reorder point at expected 70-day import demand plus safety stock because production, sailing, customs, and receiving took longer than supplier lead time alone.

Common mistake

Building reorder points from factory lead time only and ignoring ETD shifts, port delays, customs release, warehouse receiving, MOQ, and shelf-life constraints.

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