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reorder point

   Also found in: Acronyms, Encyclopedia, Wikipedia 0.01 sec.
1. That point at which time a stock replenishment requisition would be submitted to maintain the predetermined or calculated stockage objective.
2. The sum of the safety level of supply plus the level for order and shipping time equals the reorder point. See also level of supply.
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Inventory Documents generated would include Goods Received Notes, Material Requisitions from consuming departments, Materials Issue Acknowledgments, Accounting records, Bin Cards, Inventory verification reports, List of reorder points & Goods replenishment requests.
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The reorder point is equal to demand through vendor lead-time plus a safety stock factor.
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Forecasts materiel demands in order to determine Authorized Stocking Levels (ASL) and reorder points.
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