What is Reorder point and Reorder quantity? and what is its
significance?
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Answer Posted / 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.
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