The inventory level at which you place the next order so it lands before you run out: daily sales × lead time, plus safety stock.
The inventory level at which you place the next order so it lands before you run out: daily sales × lead time, plus safety stock.
It is a number, not a feeling. Reordering "when it looks low" is how the best-selling line is the one that is out.
Every term here is one the protocol actually uses, defined for somebody who was never taught it — with the part that usually goes wrong. All terms →