The amount of new stock ordered; it can be seen from a stock control chart and is calculated by the difference between the maximum and minimum stock levels.

• A. Lead time
• B. Minimum stock level
• C. Reorder quantity
• D. Maximum stock level

Answer: (C)

Reorder quantity is the amount of stock you order to bring inventory back up from the minimum level to the maximum level. On a stock control chart you see a minimum stock level (safety stock) and a maximum stock level (the target upper limit). When stock hits the minimum, you place an order for enough units to raise it to the maximum. The size of that order—the difference between the maximum and minimum levels—is the reorder quantity. This helps balance avoiding stockouts with not overstocking. Other terms like lead time (the delay before an order arrives) or the individual levels themselves don’t define how much to order.