Re-order costs

Re-order costs

1) The total cost of placing a repeat order for an item either externally with a supplier or for internal manufacture. The costs may include elements to cover: order preparation, administration, IT overheads, correspondence, telephone, transportation, goods inward processing, inspection and for manufacture, batch set up costs and other production overheads. (Source: ILTSupply-Chain Inventory Management SIG)

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.201 (288 p.)