Order point method refers to: For a certain material or product, due to production or sales, it gradually decreases. When the inventory decreases to a predetermined point, the order form (purchase order or processing order) begins to be issued. To replenish inventory, until the inventory volume is reduced to safety stock, the material (product) ordered by the order just arrived at the warehouse to supplement the consumption in the previous period. The value of this order is called the order point.