Final answer:
The inventory level at which suppliers replenish their customer’s inventory with a predetermined order quantity is known as the reorder point or restocking level, part of inventory management intertwined with equilibrium price and factors of production.
Step-by-step explanation:
The inventory level where suppliers replenish their customer's inventory with a predetermined order quantity is commonly referred to as reorder point or restocking level. This practice is part of inventory management, which is crucial in ensuring that a business maintains sufficient inventory levels to meet customer demand without incurring excess costs due to overstocking.
Inventory management intersects with other key business concepts like the equilibrium price, which is the price point where the quantity demanded by consumers equals the quantity supplied by producers, and equilibrium quantity, the amount of a product that is sold when the demand and supply are equal at a certain price level.
Excess demand, leading to a shortage, or excess supply, resulting in a surplus, can both affect restocking strategies and inventory levels. Efficient inventory management takes into account factors such as factors of production, which include labor, materials, and machinery.