Using a fixed-point reordering system, a business might order new inventory when it is down to about one-third of its maximum stock.

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A fixed-point reordering system typically involves setting a specific stock level at which new inventory should be ordered. Ordering new inventory when stock levels reach about one-third of maximum can help ensure that the business does not run out of inventory, while also preventing excess inventory buildup.

Using a Fixed-Point Reordering System, a Business Might Order New