Fixed Order Quantity - What does order quantity mean?

Q: What does order quantity mean?

the quantity of an item to be ordered when STOCKS of the item fall to a predetermined minimum stock level. The reorder quantity should serve to replenish stock to the planned maximum stock level. The optimum order quantity may be ascertained by means of a STOCKHOLDING MODEL.

Answer

the amount of an item that has to be purchased when the current stock level drops below a certain threshold! Stock should be replenished to the intended maximum level using the reorder quantity. Using a STOCKHOLDING MODEL, one may determine the ideal order quantity.

Fixed Order Quantity - What does order quantity mean?

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