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Technical Note

Inventory management (B): Reorder point

By Wagner, Laura / Yavuz, Mirel / Carrera, Clara

This note examines how firms decide when to reorder inventory under demand uncertainty. It connects operational concepts such as reorder points and safety stock with managerial trade-offs between service levels and inventory costs. Through accessible examples and visual explanations, students gain practical insight into balancing responsiveness and risk in supply chain operations.

Collection: IESE (España)

Ref: OITN-11-E

Format: PDF

Number of pages: 6

Publication Date: Mar 2, 2026

Language: English

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Learning Objective

Students will learn to analyze demand uncertainty and determine reorder points and safety stock levels that balance service performance with inventory costs.

Inventory management (B): Reorder point

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Inventory management (B): Reorder point

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Inventory management (B): Reorder point

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