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[Music] so what about reorder point I see a lot of organizations using reorder point as their methods of planning when to release the next order into either the shop or the purchase area reorder point is based upon a target level and well talk about this demand you leave x plus safety stock where the target level is equal to the demand per period and that demand can either be historical demand or you can actually go into MRP underscore D and calculate the actual of projected demand from MRP you then multiply or adds a review period and the lead time times that demand and add safety stock and that will then give you your target level so what you have on hand - the target level is typically what youre going to order now this reorder point if we look at it in terms of this graph we can see that you consume products over time in this case five periods of time and then the logic is that you replenish inventory with an order quantity and repeat the cycle the curve that represents the dema
