What triggers a purchase order in inventory management?

In inventory management, triggers for a purchase order are crucial in maintaining optimal stock levels. The correct answer is based on the concept of reorder points. When inventory levels reach a predetermined minimum threshold, known as the reorder level, it indicates that stock is running low and requires replenishment. This proactive approach helps prevent stockouts, ensuring that items are available for sale or use without interruption.

The reorder level is typically calculated based on sales patterns, lead times, and safety stock requirements. By monitoring these levels, businesses can effectively time their purchases to align with demand, ultimately enhancing operational efficiency.

The influence of the highest sales volume, while significant for understanding demand patterns, does not directly trigger a purchase order. Scheduled reviews of inventory levels provide insights into stock status but are not the actual moment of triggering a reorder. Similarly, expiration dates can impact stock management, particularly for perishable goods, but they do not establish a direct correlation for triggering a purchase order based on insufficient inventory.