Min-Max Inventory
Min-Max inventory is a replenishment method using a minimum trigger level and a maximum target level for each stocked item.
What this term means in maintenance
Min-Max inventory is a replenishment method using a minimum trigger level and a maximum target level for each stocked item.
How Min-Max works
When available stock reaches or falls below the minimum level, replenishment is initiated to restore inventory toward the maximum level.
Practical example
A filter has:
- Minimum: 10
- Maximum: 30
When stock reaches 10, an order is raised to restore the balance toward 30 after considering open purchase orders.
Inputs
Levels may consider:
- Demand
- Lead time
- Safety stock
- Order quantity
- Criticality
- Shelf life
- Storage capacity
Maintenance context
Rare critical spares may not fit a simple consumption-based Min-Max method.
Common mistake
Setting levels once and never reviewing demand, lead time, or asset changes can create stockouts or excess inventory.
How this term differs
Min-Max Inventory is a policy that replenishes from a minimum trigger toward a maximum target. It is related to Reorder Point, Reorder Quantity, and Safety Stock, but these terms describe different records, measures, roles, strategies, or decisions and should not be used interchangeably.
Related concepts
Related maintenance terms
Keep exploring connected CMMS, reliability, and maintenance planning terms.
Reorder Point
A reorder point is the inventory level at which replenishment should be initiated so expected demand can be covered during supplier lead time.
Safety Stock
Safety stock is additional inventory held to protect against uncertainty in spare-parts demand, supplier lead time, or delivery reliability.
Stock Accuracy
Stock accuracy is the degree to which recorded inventory quantities and locations match the physical spare parts actually available.
Glossary FAQs
- What is Min-Max inventory?
A replenishment method using a minimum trigger and maximum target quantity.
- What determines the levels?
Demand, lead time, safety stock, criticality, shelf life, and order quantity.
- Should levels be reviewed?
Yes. Demand, suppliers, assets, and lead times change.