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In this video tutorial, the speaker discusses the reorder point (ROP), which is crucial for determining when to reorder inventory. The ROP calculation helps ensure that stock levels do not drop too low, which could lead to stockouts, or prevent excessive ordering that leads to surplus inventory. The speaker emphasizes the importance of understanding ROP in conjunction with previous videos on economic order quantity (EOQ) and safety stock. By utilizing the ROP, businesses can optimize efficiency, save money, and manage inventory effectively, ensuring they maintain the right amount of stock without excess or shortfall.