Min/Max

The Min/Max method calculates a reorder quantity for an item whenever the Inventory Qty Available/On Hand quantity plus the Qty On Order quantity, if applicable, is less than the Minimum Order Qty in the Location tab in the Inventory Items function. It is assumed that any Safety Stock buffers are included in the Minimum Order Qty. The Min/Max formula is:

If (Available quantity + On Order quantity) < Minimum Order Quantity, then Reorder Quantity = Maximum Qty - (Available + On Order)