Min/Max or Min/Max Replenishment is a Term describing the Inventory Control Practice where inventory is replenished (Make or Buy) only when a minimum inventory level (Min) is reached. The Reorder Quantity determines the maximum inventory level (Max).
Min/Max Replenishment is a Make-to-Stock strategy using the Pull principles to determine the moment and amount of replenishment ordering.
Notes
- Min is the reorder point. The Replenishment Cycle Time determines the true minimum inventory level, as inventory may continue to reduce between the date/time of reordering and date/time of receipt.
- Max is the order up-to level. This inventory may not be achieved due to inventory reduction during the time it takes to replenish the inventory (Replenishment Cycle Time).
Community Importance
Rating:
Process(es)
ID | Name | Level | x | S1 | Source-to-Replenish | 2 | S1 |
S101 | Create Schedule | 3 | S101 |
Min/Max 0 0 {{{keywords}}} {{{description}}}