Minimum reorder level

The minimum reorder level (MRL) is the minimum stock quantity that should be available at all times. It indicates when a request for additional stock must be placed. It is also known as re-order point and triggers an action by the store personnel to submit a requisition to replenish the stock. The MRL is usually determined by the consumption pattern and the lead time, following the formula: MRL = (Average monthly consumption * lead time in months) + buffer stock.

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