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Supply Chain Glossary - M

Supply Chain Glossary - M

minimum order quantity

An order quantity modifier, applied after the lot size has been calculated, that increases the order quantity to a preestablished minimum.

A type of order point replenishment system where the "min" (minimum) is the order point, and the "max" (maximum) is the "order up to" inventory level. The order quantity is variable and is the result of the max minus available and on-order inventory. An order is recommended when the sum of the available and on-order inventory is at or below the min.


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