Department of Corrections and Rehabilitation - Operations Manual

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Chapter 2 – Fiscal Management

Article 12 – Materials Management

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22030.10.5.1 Min/Max Concept of Setting Levels

  • A simple MINMinimum/MAX supply level system provides proper inventory control. To determine MINMinimum/MAX supply levels, the following supply history is necessary:

    • The total amount of recurring issues for one demand year (365 consecutive calendar days).

    • Ordering and shipping time (used to establish minimum level).

    • Operating level (used to establish maximum level).

  • Low demand stock items, regardless of their unit value, are prime candidates for the MINMinimum/MAX concept or for discontinuance.