How to Maintain Minimum Stock Levels?

Vendor Managed Inventory
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sushil sharma

How to Maintain Minimum Stock Levels?

Should we maintain minimum stock levels for both fast moving and slow moving stock?
What differences exist in maintaining the levels of each type of stock?


J. Kamp-van Kleven, Netherlands

Determining Minimum Stock Levels

Minimum stock levels depend on the lead time of parts and the cost/risk of non-availability. It has little to do with slow/fast moving.
Another thing to be considered is the function of the stock and what happens when you don't have stock.
For each part you should determine if you need to have it on stock. Once you know what you need to have on stock then you determine the leadtime (contact your supplier), how much you use in the period of the lead time and then maybe add a safety margin. That's your minimum stock level.

ashok mhatre
Manager, India

How to Determine Minimum Stock Levels?

@J. Kamp-van Kleven: For slow moving items lead time could be important, especially for items which are not only slow moving, but also have a low shelf life and a high variability of demand.


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