Your inventory reorder point should consider the natural lead-time for an order and unexpected order delays.

Question

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The inventory reorder point should account for the time it takes for an order to arrive, as well as any unexpected delays that may occur during the ordering process. By factoring in these variables, a business can ensure that they have enough inventory on hand to meet demand without running the risk of stockouts or excess inventory.

Your Inventory Reorder Point Should Consider the Natural Lead-Time for an Order