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Min/Max Inventory 0 0 {{{keywords}}} {{{description}}}
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Difference between revisions of "Min/Max"
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| − | {{this}} is a term describing the practice where inventory is replenished ([[t:Make]] or [[t:Buy]]) when a minimum inventory level (Min) is reached. The reorder quantity determines the maximum inventory level. | + | {{this}} is a term describing the practice where inventory is replenished ([[t:Make|Make]] or [[t:Buy|Buy]]) when a minimum inventory level (Min) is reached. The reorder quantity determines the maximum inventory level. |
===Notes=== | ===Notes=== | ||
| + | * Min is the reorder point. The [[m:RS14|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 ([[m:RS14|Replenishment Cycle Time]]). | ||
<ins> | <ins> | ||
</ins> | </ins> | ||
Revision as of 19:53, 28 July 2020
Min/Max is a term describing the practice where inventory is replenished (Make or Buy) when a minimum inventory level (Min) is reached. The reorder quantity determines the maximum inventory level.
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).
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