Glossary
What is Min/Max Inventory?
Last updated July 2026
Definition
Min/max is a replenishment method that reorders up to a maximum level when stock falls to a minimum. Simple to run, but it drifts into excess when the min and max are set once and never revisited.
The minimum acts as the reorder point and the maximum caps the order-up-to level. It works when demand and lead time are stable.
Much industrial excess traces to min/max levels set years ago against demand that has since shifted — a prime target for optimization.
Part of Excess & obsolete inventory.
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