Trigger Point
A trigger point, also called reorder point (ROP) or order point, is the predefined stock level in inventory and supply-chain management that automatically signals replenishment. The system compares current inventory position—usable on-hand plus open receipts and reservations—against this threshold and generates a purchase, transfer, or kanban order when stock falls to or below the trigger point.
On the shop floor, trigger points are set per SKU, bin, coil, lot, or MRO item using average daily consumption, supplier lead time, and safety stock. When a fastener bin or resin tank crosses its trigger point, the system fires a purchase requisition, kanban, or internal transfer before the next production run consumes the remaining quantity. In raw-material tracking, the trigger point is evaluated against real-time inventory position, not just on-hand, so reservations, open receipts, returns, and repair demand are included before an order releases. Warehouse systems use the same threshold logic to automate alerts and replenishment orders when inventory crosses a level, cutting manual checks and sustaining service levels despite variable supplier performance. The core rule remains: reorder point = average daily usage × lead time + safety stock. This event-driven, execution-focused approach keeps lines running and shelves filled.
Is a trigger point the same as a reorder point?
Yes. In most inventory systems the terms are used interchangeably for the threshold that initiates replenishment, and the trigger point is calculated as average daily usage times lead time plus safety stock.
What does inventory position mean in trigger-point logic?
Inventory position is the stock quantity the planning engine uses to decide whether to order. It reflects today's usable balance—not raw on-hand alone—typically including open receipts, reservations, returns, and repair demand.
Can trigger-point logic drive automatic replenishment?
Yes. Many ERP and order-management systems use trigger points to generate alerts, purchase orders, or replenishment recommendations automatically when stock reaches the threshold, reducing manual checking and maintaining service levels.