Skin ADV

Supply Chain Glossary

Glossary  >  R  >  Reorder Level  


 

Reorder Level


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

In stock control, the reorder point or reorder level is the level of inventory that triggers the generation of an order to replenish the stock.  In practice, the reorder point is usually set based on the desired service level planned. The service level is the percentage of requests met first time from stock on hand.  The higher the service level, the greater the number of requests which can be met first time from stock, and the higher the safety stock will be.  In most stock control situations, demand cannot be easily forecast, as demand patterns vary.  Assuming a normal distribution of monthly demand, it is possible to calculate the stockholding that would give a 95% service level, a 97.5% service level and so on.  A 1% increase in service level does not imply a 1% increase in stock; stock levels need to increase geometrically.  The reorder level is set higher to deliver a higher service level and implies an increased level of safety stock.  See also Economic Order Quantity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Job Opportunities
 
Imaging Order Management Logistics Specialist
     
     Nashville, Tennessee  -  PERM  -  Philips

Quality Manufacturing Engineer
     
     Murrysville, Pennsylvania  -  PERM  -  Philips

Global Supplier Account Manager
     
     Home Based  -  PERM  -  Philips

Supply Chain Quality Engineer
     
     Mount Pleasant, Pennsylvania  -  PERM  -  Philips

Electrical Engineer - Procurement
     
     Bothell, Washington  -  PERM  -  Philips

Supply Chain Project Manager
     
     Murrysville, Pennsylvania  -  PERM  -  Philips

Transportation Manager - Americas Region
     
     Bothell, Washington  -  PERM  -  Philips

Category Sourcing Manager
     
     Nashville, Tennessee  -  PERM  -  Philips

Transport Specialist (Nashville, TN)
     
     Nashville, Tennessee  -  PERM  -  Philips

Supply Planner
     
     Murrysville, Pennsylvania  -  PERM  -  Philips

Physical Distribution Manager
     
     Lockbourne, Ohio  -  PERM  -  Philips

Material Handler 3
     
     Reedsville, Pennsylvania  -  PERM  -  Philips

Procurement Manager Bay Area, CA
     
     Bay Area, CA  -  PERM  -  Teldar Group

Procurement Director Bay Area, CA
     
     Bay Area, CA  -  PERM  -  Teldar Group

Sourcing Manager North Carolina
     
     North Carolina  -  PERM  -  Teldar Group

 

Supply chain E-learning



Explore available supply chain e-learning modules by language and academy



News & Trends
 

Last update 10 May 2022
April PMI rises to seven-month high amid stronger demand, despite sharper price increases
   Source: S&P Global US Manufacturing PMI   -  IHS Markit
United States 


Retail

The retail sector is always on the move. Whether this involves shopping centres, shops in inner city locations or at airports – trends change very quickly and the goods change just as rapidly too. To keep up with these developments, highly complex and process driven supply chains are needed. With our...

Warehouse Management Systems are Critical for Customer-Centricity in the Post-COVID 19 Era

As e-commerce growth is continuing at a rapid pace, companies are having to rapidly change their logistics footprint (both operational and physical) and fulfillment to match rising customer expectations. As we move in...


Education
 

Resources
 
PPG INDUSTRIES, LTD.

Company Established in 1883, PPG Industries manufactures protective and decorative coatings, sealants, adhesives, metal pretreatment products, flat glass, fabricated glass, continuous-strand fiberglass products, and...

From e-marketplace to e-supply chain: re-conceptualizing the relationship between virtual and physical processes.

In this research in progress paper, we seek to understand how pervasive use of ICT based platform such as electronic marketplaces influences the evolution of novel inter-organizational relationship. We focus on selling a...