The reorder point is the stock level that triggers replenishment. It relates to demand during replenishment lead time and any buffer, rather than automatically specifying how much to order.[1]
Define the balance being compared: physical stock alone can omit incoming supply and customer commitments. Review the setting when demand or lead time changes so an appropriate historical threshold does not silently become obsolete.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.