fixed quantity reorder system, reorder level system
fixed quantity reorder system, reorder level systemor
continuous review systeman arrangement whereby a specified quantity of materials is reordered at variable intervals. In determining the interval between orders, account must be taken of the usage rate of STOCK during the interval between placing the order and delivery of the ordered material. With such a continuous review system the stock position is monitored after every withdrawal and when the stock level drops to a predetermined reorder point a fixed quantity is ordered. See STOCK CONTROL, STOCK HOLDING COST.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson