What is Reorder point and Reorder quantity? and what is its
significance?

Answers were Sorted based on User's Feedback



What is Reorder point and Reorder quantity? and what is its significance?..

Answer / pawan dua

Recorder Point is a minimum level of the on-hand inventory
stock; when the onhand stock reaches this point, an
automatic requisition is generated. Reorder quantity is the
governed by multiple factors like - safety stock or maximum
quantity; supplier BOD; Lead time, minimum order quantiy
etc.
The significance is to ensure handling of shortages which
enables smooth manufacturing.

Is This Answer Correct ?    29 Yes 9 No

What is Reorder point and Reorder quantity? and what is its significance?..

Answer / manik

Reorder Point = Safety stock + planned receipts during lead
time.

Reorder Qty = How much quantuty to be ordered when stock
reached below reorder point.

Significance- Ther are used in reorder planning.

Email me = manik.leo@gmail.com

Is This Answer Correct ?    14 Yes 5 No

What is Reorder point and Reorder quantity? and what is its significance?..

Answer / sunil budhwani

Reorder point: We have specific on hand balance in
warehouse when it is below than i specific quanity (say
safety stock) a requisition/mo proposal will generate
automatically. So the point at which this proposal will
generate known as reorder point.

Reorder point quanity: The minimum order quantity which is
defined in warehouse for generating reorder point proposals
called reorder point quantity quanity.

Its very important from the planner point of view because
as soon we will have less on hnad quanity it will trigger a
requirment in the system for that perticular item.

Is This Answer Correct ?    24 Yes 16 No

What is Reorder point and Reorder quantity? and what is its significance?..

Answer / samtosh

Reorder Point=Demand PER Year/# Working Days * LeadTime.

Reorder Quantity (OR) Economic Order Quantity=SQRT(2*demand
PER Year*SetupCost)/Holding Cost OR Carrying Cost

significance:To avoid dipping into Saftey Stock.

Reorder Point Uses Forecast's the demand and it determines
when the reorder quantity is required.

Mail:santoshknathan@gmail.com

Is This Answer Correct ?    7 Yes 1 No

What is Reorder point and Reorder quantity? and what is its significance?..

Answer / flonabbika

Reorder Point is the amount of stock at which a
replenishment order is made keeping in mind the demand
during lead time. Reorder quantity is an alternative term
for reorder point.

This level ensures prevention of stock shortages and the
associated costs, usually known as stock out costs. It keeps
company operations going until the next optimal order
quantity is received at company premises.

Is This Answer Correct ?    1 Yes 6 No

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