reorder level

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The number of units of a particular item of stock to which the balance can fall before an order for replenishment is placed. A reorder-level system is a stock-control system based on the principle that orders for the replenishment of items of stock are only placed when the balance of stock for a particular item falls to a predetermined level. The reorder quantity is the quantity ordered to replenish stock when the stock level falls to the reorder level.

Subjects: Accounting.

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