Glossary

Min-Max

Tags: Glossary

A system used to maintain inventory levels by setting minimum and maximum stock levels.

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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

What does Min-Max mean?

Min-Max is a term used in logistics to describe the minimum and maximum levels of inventory that a business should maintain. The Min-Max system helps to ensure that inventory levels are sufficient to meet demand without leading to overstocking or waste. The system works by setting a minimum inventory level that triggers a reorder, and a maximum level that triggers a halt to ordering until inventory falls below the minimum. 

Related Glossary terms

Consignment Inventory

Excess Inventory

Finished Goods Inventory (FGI)

Inventory Turn

Negative Inventory

Safety Stock

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