What is Reorder Point (ROP) System? - Formula, Example, and Calculations
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What is Reorder Point (ROP) System? - Formula, Example, and Calculations
It is all about reorder point, its definition, formula, calculation, and its advantages. Reorder point system is a process where the inventory is restored as soon as the stock hits specific level. It helps to uninterrupted production.Formula for reorder is Reorder point = (Average lead time in days X average daily usage) safety stockBenefits ...
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