Fixed order point

The process of automatically ordering items when the available quantity falls below a set reorder point is called fixed order point (FOP). With this method, each item is assigned its own reorder point.

For example, if an item is assigned a reorder point of 50, then an order for this item is automatically placed when its available quantity falls below 50. The quantity to reorder is based on the reorder quantity code that is set for the item.