Min/Max Stock Policies — Assessment

1. What does the maximum level guard against?

High taxes Stockouts Theft Overstock and frozen cash

2. How does AWRA’s Reorder screen calculate a top-up for a warehouse with a maximum set?

Maximum + minimum A random number Maximum − on-hand − what is already on order Minimum × 2

3. On-hand is at the min of 50, max is 200 and nothing is on order. How much is suggested?

50 150 250 200

4. How should the minimum level be set?

Always zero From lead-time demand plus a safety buffer By habit Randomly

5. Why tune min/max levels over time?

They never change For tax Demand and lead times shift, so stale levels misbehave To delete data

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