Reorder Point

The reorder point is the number of units you have to have left in inventory to order more.

Let’s say your reorder point is 6. When you have 6 units left in stock you will order more. The exact order point depends on how many units you sell in an average day and how many days it takes your supplier to get the replacement units to your door.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/reorder-point/