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Explain the Following Terms with Proper Example: Re-order Point - Entrepreneurship

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Question

Explain the following term with proper example:

Re-order point

Definition

Solution

It is a level at which a new order must be placed so that the inventory is renewed before the stock reaches zero level.
It is estimated by using the formula Reorder Point = Usage Rate x Lead Time.

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Cash Flow Projection
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Chapter 5: Business Arithmetic - Very short answer (exceed 15 words) [Page 208]

APPEARS IN

CBSE Entrepreneurship Class 12
Chapter 5 Business Arithmetic
Very short answer (exceed 15 words) | Q 1.5 | Page 208
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