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Inventory · Definition

Min/Max Inventory

A replenishment rule that orders up to a maximum whenever stock hits a minimum.

Min/max sets two thresholds per item: when stock falls to the minimum, you order enough to bring it back to the maximum. It is the simplest practical replenishment policy and needs no forecast.

It works well for stable, low-value items. For volatile or expensive lines, a reorder point with calculated safety stock gives better service at lower total inventory.

How it is calculated

Order quantity = Maximum level − Current stock on hand

Triggered when stock on hand reaches or falls below the minimum.

Also called

  • min-max planning

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Related terms

Reorder Point

ROP

The stock level that triggers a new purchase or production order.

Par Level

The standard quantity a location should hold at the start of each period.

Safety Stock

A buffer of extra inventory held to protect against demand or supply variability.

Economic Order Quantity

EOQ

The order size that minimises the combined cost of ordering and holding stock.

More in Inventory

ABC Analysis Asset Tracking Available to Promise (ATP) Backorder Barcode Carrying Cost Consignment Inventory Cycle Count

Min/Max Inventory is not just a definition here

Inventory runs on this vocabulary every day in AWRA OpsHub — 44 of our 259 glossary terms describe things the platform actually does.

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