What term refers to the stock level an item reaches before it is reordered?

The term that accurately describes the stock level an item must reach before it is reordered is known as the reorder point. This concept is essential in inventory management, as it helps businesses prevent stockouts and maintain adequate supply levels for operational efficiency.

The reorder point is determined by analyzing various factors, including the lead time for reordering and the average usage rate of the item. Once the stock level falls to this predefined point, it signals to the inventory manager or automated system that new inventory should be ordered. This ensures a seamless flow of products and reduces the risk of disrupting processes due to insufficient stock.

In contrast, while terms like minimum stock level and inventory threshold may sound similar, they often refer to broader inventory management concepts rather than the specific threshold for placing a new order. Supply limit, on the other hand, does not pertain to reordering but rather the maximum capacity that can be held in storage, which is unrelated to the timing of reorders.