Why is it important to define Minimum and Maximum levels?

Why is it important to define Minimum and Maximum levels?

Defining Min/Max levels helps you:

  • ✅ Avoid stockouts and production delays

  • ✅ Prevent overstocking and wastage

  • ✅ Enable system alerts for timely reordering

  • ✅ Support better forecasting, procurement, and MRP

  • ✅ Maintain inventory discipline across warehouses

It forms the foundation of smart, proactive inventory management.


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