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Home > QFINANCE Dictionary > Definition of minimum inventory level

Definition of

minimum inventory level

Operations & Production

size below which inventory must not decrease an inventory level, set for control purposes, below which holdings should not fall without being highlighted. It is calculated as follows:

Reorder level − Average rate of usage × Average lead time

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

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