The decision of when to place an order in a traditional inventory system is specified by the

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The decision of when to place an order in a traditional inventory system is specified by the reorder point, which is the level of inventory at which a new order should be placed to avoid stockouts. The economic order quantity (B) is the optimal order size that minimizes the total inventory costs. The company inventory policies (A) are the set of rules and procedures that govern the management of inventory. The stockout point (C) is the inventory level at which the stock runs out.

The Decision of When to Place an Order in a Traditional