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Glossary Supply Chain / Term

order point system

A reorder system that places orders when on-hand and scheduled receipts reaches a predefined level, instead of using requirements suggested by MRP from a bill of material explosion. An order point system normally is used to trigger a single order when needed, but may also be time-phased in projecting inventory levels in the future based on forecast demand in multiple periods and triggering multiple orders as needed.

Permanent link order point system - Creation date 2021-11-03


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