The Minimum Reorder Point is an important principle for any business, helping to ensure that inventory is kept up-to-date and sufficient for needs. In simple terms, it’s the point at which a company should place a new order to replenish their stock levels. The minimum reorder point takes into account both the current stock level and the rate of consumption, striking the perfect balance between too much and not enough inventory. By setting an appropriate reorder point, businesses are better able to ensure their products are always available to customers – and avoid costly out-of-stock situations.