Stock levels at which new orders must be placed are known as _____.

Question

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Reorder points are the thresholds of inventory levels at which a new order must be placed to avoid stock-outs. This helps maintain a buffer stock to cover lead times and unexpected changes in demand. Usage rates refer to the amount of inventory consumed or sold within a particular period. Order lead time is the time it takes for an order to be fulfilled from the moment it is placed. Safety stock is the additional inventory kept beyond the normal requirements to guard against stock-outs.

Stock Levels at Which New Orders Must Be Placed Are