The reorder point occurs during a stockout.

Name: The reorder point occurs during a stockout.
Brand: Quizplus
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Quizplus · Accepted Answer

The reorder point is the inventory level at which a replenishment order should be placed to avoid running out of stock. It is typically set above the safety stock level so that there is a buffer in case of unexpected demand or supplier lead time delays. Therefore, the reorder point should be reached before a stockout occurs, not during one.

The Reorder Point Occurs During a Stockout