Difference between re order level and re order quantity

what is the difference between reorder level and re order quantity ?

Replies (3)
Quick Summary
The reorder level signals when to place a new order for inventory, indicating the specific stock point that triggers a repurchase. In contrast, the reorder quantity determines the exact number of units to order each time, aiming to minimise carrying and ordering costs. Essentially, reorder level answers 'when to order?', while reorder quantity answers 'how much to order?' for optimal stock management.

Reorder level is the stock level of a particular item of inventory, at which a firm needs to place an order for the fresh supply of the item; whereas reorder quantity is the magnitude or the number of units to be ordered in a new purchase order for the fresh supply of a particular inventory item.

While reorder level gives a signal regarding when to place a new order for the fresh supply of an inventory item; reorder quantity makes obvious the size of a particular order.

While reorder level provides an answer to the question ‘when’; reorder quantity provides an answer to the question ‘how much’
ROL - gives answer to at what level of stock the firm should order for purchase (i.e. When to order?)
ROQ - gives answer to at what quantity such order is placed in which carry cost and order cost is at minimum (i.e. How much to order?)
Well Explained Sagar Patel

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details