Reorder Level Inventory Control

Reorder Level,  Maximum Stock Level  &  Minimum Stock Level  Definition

Reorder Level:-

It is a control limit which indicates the point at which an order should be placed so that minimum stock level is maintained at all times. It is the sum of minimum stock level and quantity of stock required to meet the demand during lead time.

Maximum Stock Level:-

The highest amount of stock that is permitted to be in stock. The upper limit expressed in quantitative terms, to which the stock of an item should normally not be allowed to rise.

Minimum Stock Level:-

The least amount of stock that should be in stock at all times. It is control limit which indicate if stocks are too low, for a specific item. It is the quantity of stock used between placing and receiving an order.


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