Article 12 – Materials Management
22030.10.5 Setting Levels
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Component parts of a stock objective are expressed in days of supply. The component parts consist of the following:
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Safety level.
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Ordering and shipping time.
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Operating level.
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Setting levels shall assist personnel who maintain stock to have on-hand materials when they are needed. Levels are set to ensure that stock shall not be depleted. The Department shall use the MINMinimum/MAX concept to set the majority of supply levels; however, the R/O concept may be preferred for some items.