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The lowest inventory level at which a new order must be placed to avoid a stockout is known as the replenishment threshold?

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Parrainidn

It is true that the lowest inventory level to avoid a stockout is the Replenishment threshold.

It is very important that stock is purchased at the right time for a company because:

  • It ensures that demand for goods and services can be met
  • It ensures that storage costs are not too high from ordering at times when goods not needed
  • It ensures that goods are not damaged by being stored for too long

The Replenishment threshold is one of the tools that can help a company know when to order supplies because it is the lowest point where they know that they can get to before ordering more supplies.

In conclusion, knowing your replenishment threshold is very important in business because it ensures that you order at the right time to avoid problems with either not having enough stock or holding too much stock.

Find out more at https://brainly.com/question/16209393.

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