What is the inventory level that triggers a new order called?

The inventory level that triggers a new order is called the reorder point.

A reorder point is a stock threshold used to signal replenishment. When available inventory falls to that level, a business places an order early enough for new goods to arrive before stock runs out. The threshold is normally based on expected demand during supplier lead time plus a safety-stock allowance.

For example, if a retailer sells 10 units per day, expects delivery in five days, and keeps 20 units as protection against uncertainty, its reorder point would be 70 units. The exact calculation depends on demand forecasts, delivery reliability, and desired service levels.

Reorder point is often confused with economic order quantity, or EOQ. The reorder point answers when to order; EOQ answers how much to order. Lead time is the waiting period between placing and receiving an order, while safety stock is extra inventory held against surprises. The related term reorder level is also commonly used.