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Home > QFINANCE Dictionary > Definition of maximum stock level

Definition of

maximum stock level

Operations & Production

size above which inventory must not increase an inventory level, set for control purposes, which actual holdings should never exceed. It is calculated as follows:

Reorder level + Economic order quantity − Minimum rate of usage × Minimum lead time

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Definitions of ’maximum stock level’ and meaning of ’maximum stock level’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’maximum stock level’ and other financial terms with our online QFINANCE Financial Dictionary.

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