Difference Between Re-Order Level and Re-Order Quantity (with Formula, Example, Graph and Comparison Chart)
Re-Order Level (ROL) implies the material level at which purchase requisition is generated for a fresh supply of material. When the stock on hand, approaches the reorder point, the storekeeper takes action to replenish the exhausted stock. So, the difference between reorder level and minimum level will be adequate to meet the production requirement till the fresh supply is received.
On the contrary, Re-Order Quantity (ROQ) represents the size of the order, which is going to be placed by the entity with the selected supplier when the stock level touches reorder level.