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In an inventory system, what is the main purpose of a reorder threshold?

easy📝 Conceptual Q2 of 15
LLD - Design — Online Shopping Cart
In an inventory system, what is the main purpose of a reorder threshold?
ATo set the maximum stock limit
BTo trigger restocking when inventory is low
CTo calculate total sales
DTo track supplier details
Step-by-Step Solution
Solution:
  1. Step 1: Understand reorder threshold meaning

    It is a predefined stock level that signals when to order more items.
  2. Step 2: Match purpose to options

    Triggering restocking when inventory is low matches the reorder threshold's role.
  3. Final Answer:

    To trigger restocking when inventory is low -> Option B
  4. Quick Check:

    Reorder threshold = Restocking trigger [OK]
Quick Trick: Reorder threshold alerts when stock is low to reorder [OK]
Common Mistakes:
  • Confusing reorder threshold with maximum stock
  • Thinking it calculates sales

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