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  • Writer's pictureSedat Onat

ROP - ReOrder Point

Updated: Aug 30, 2023

ReOrder Point, an element of Minimum Stock tracking in Stock Management, is the order trigger point indicating at which stock level the material that should be in stock will be reordered.

This trigger level, updated periodically according to usage, is calculated by considering the Lead Time and the EOQ - Economic Order Quantity.

ReOrder Point = Average daily consumption x Delivery Time (days)

Product= Electrode

15 kg (Average Daily Consumption) x 21 Calendar days = 315 kg Order Trigger Point

Economic Order Quantity = 200 kg

315 kg / 200 kg = 1,575 => 2

1,575 => 2

2 x 200 kg = 400 kg EOQ Accounted order quantity

 






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