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all right in this short video we are going to discuss the reorder point up to this point in the chapter weve talked about an economic order quantity or an economic production quantity and that tells us that calculation tells us how many pieces to make or to buy of something well the reorder Point tells us when to buy it its a very simple calculation its very easy to use and you can use this calculation with or without a buffer for Safety stock so Im going to talk you through how safetysock would incorporate into the reorder point but for the for sake of this course Im going to teach you the reorder Point calculation and we are not going to add the Safety stock buffer so a reorder point is when the quantity on hand of an item drops to a specific amount then that item is reordered and you can do the reorder Point calculation whether something is a make item or a buy item so if youre buying it from a vendor or if youre making it internally is irrelevant the calculation is exactly t