Min/Max

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).

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