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Definition of

reorder level

Operations & Production

fixed limit triggering new order of inventory a level of inventory at which a replenishment order should be placed. Traditional "optimizing" systems use a variation on the computation of maximum usage multiplied by maximum lead, which builds in a measure of safety.

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Definitions of ’reorder level’ and meaning of ’reorder level’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’reorder level’ and other financial terms with our online QFINANCE Financial Dictionary.

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