Determining Minimum Stock Levels
J. Kamp-van Kleven, Netherlands
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.