Inventory Management Made Simple: EOQ, ROP, EPQ, Cycle Counting, ABC Analysis & More | Chapter 12 - Reorder Point (ROP) Explained — When to Reorder Inventory

Continue your operations and inventory management learning with this focused overview of the Reorder Point (ROP), a key concept used to determine when inventory should be reordered. In this video, Operations University instructor Brent Bolton explains how the reorder point works and why it plays a critical role in preventing stockouts. You’ll learn how ROP connects demand and lead time, how it works alongside EOQ or EPQ, and when safety stock may be added in real-world environments. A step-by-step example walks through calculating daily demand and determining the exact point at which inventory should be reordered. 👉 Get Certified (Lean Six Sigma) Watch the full Lean Six Sigma playlist, then complete your certification at OperationsUniversity.org to earn your Lean Six Sigma certificate. 💰 Advance Your Credentials Certification & Pricing = Yellow Belt $99 • Green Belt $499 • Black Belt $899 — or all 3 for $1,199 (save when purchasing together). Employer packages: Bulk enrollments & reporting available. 💡 What You’ll Learn in This Video: • What a reorder point (ROP) is and why it matters • How ROP differs from EOQ and EPQ • The role of demand and lead time in ROP • How to calculate daily demand from annual demand • Step-by-step reorder point calculation example • When and why safety stock may be added 📢 Call to Action ✅ Subscribe for more Lean Six Sigma & operations content ✅ Visit OperationsUniversity.org to get certified ✅ Share this video with your supply chain or inventory team #LeanSixSigma #InventoryManagement #ReorderPoint #ROP #SupplyChain #OperationsManagement #ContinuousImprovement