If the stock level drops below the reorder stock in reorder point planning, what triggers procurement?

In reorder point planning, when stock levels fall below the predefined reorder stock level, procurement is typically triggered to replenish inventory. The approach taken is guided by the lot size procedure, which determines the optimal quantity of stock to order.

The lot size procedure involves calculating order quantities based on various factors, including economic order quantity (EOQ), demand forecasts, and any constraints in the supply chain. By using this method, businesses can ensure that they are ordering enough stock to minimize costs while still meeting anticipated demand. Therefore, when stocks dip below the reorder point, procurement processes initiate orders based on these calculated lot sizes, effectively balancing inventory levels without overstocking or understocking.

The other options may involve stock management strategies, but in the context of triggering procurement, the lot size method is the most relevant and practical approach. It ensures that procurement is efficient and aligned with both demand and cost considerations.