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Difference between revisions of "Min/Max"
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| − | {{this}} is a [[Term]] describing the Inventory Control [[Practice]] where inventory is replenished ([[t:Make|Make]] or [[t:Buy|Buy]]) only when a minimum inventory level (Min) is reached. The reorder quantity determines the maximum inventory level (Max). | + | {{this}} or Min/Max Replenishment is a [[Term]] describing the Inventory Control [[Practice]] where inventory is replenished ([[t:Make|Make]] or [[t:Buy|Buy]]) only when a minimum inventory level (Min) is reached. The reorder quantity determines the maximum inventory level (Max). |
===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. | * 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. | ||
Revision as of 20:03, 28 July 2020
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).
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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