Minimum and maximum stock levels
In one sentenceTwo limits set for each item: the lowest quantity you should not fall below, and the highest quantity you should not exceed, to avoid stockouts and tying up money.
Simply put
The minimum level protects you from running out, and the maximum level stops you from buying quantities that sit on the shelves for years.
When the balance drops to the minimum or close to it, you order a quantity that brings the balance back up to the maximum.
Worked example
A pharmacy set a minimum of 200 boxes and a maximum of 1,000 boxes for an item, and its balance is now 180 boxes.
Maximum level1,000 boxes
Current balance (below the minimum)180 boxes
Quantity to buy1,000 − 180 = 820 boxes
Formula: Maximum level − current balance
Don't confuse it with
Reorder pointThe reorder point decides when you order, while the maximum level decides up to what quantity you order.
in FullScreen ERP
Automatic orders in the system prepare a purchase order for items below the reorder level, approved with one click. Purchasing and suppliers