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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

See it in AWRA OpsHub

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Min/Max Inventory is not just a definition here

Inventory runs on this vocabulary every day in AWRA OpsHub — 44 of our 257 glossary terms describe things the platform actually does.