BookkeepingJanuary 30, 2023by admin0How to Solve the Reorder Point Formula Inventory Management Strategy
Let’s continue with the manufacturer example and calculate the reorder point. Let’s say you sold 40 units of an item in March, 60 in April, and 46 in May. The order for the next batch of perfume should be placed when there are 2400 bottles left in your inventory. A reorder point (ROP) is a...