Order Trigger - Reorder Points: Inventory Position, Step by Step

The reorder rule compares inventory position against the exact reorder point.

highlighted = computed this step

Above reorder point

The example-day position is 20, which is above the reorder point.

\text{example position}>R

Because the position is above R, do not place an order on the example day.

\text{decision: wait}

Later, the position is 10, exactly the reorder point.

\text{later position}=R=10

At the reorder point, place the fixed order.

\text{decision: order}