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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|Make]] or [[t:Buy|Buy]]) only when a minimum inventory level (Min) is reached. The reorder quantity determines the maximum inventory level (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).  
 
===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 11:59, 28 July 2020

Min/Max 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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Process(es)

IDNameLevelx
S1Source-to-Replenish2S1
S101Create Schedule3S101
Min/Max Inventory 0 0 {{{keywords}}} {{{description}}}