Attached is a file which can be downloaded and used to give you an idea on how the MIN/MAX is calculated based on the parameters you have in your Re-order Category.
In this spreadsheet, there is a note on how the calculation is made and a table of calculation. You can also have a look at the formula of each field.
You can use the first page to enter values, and it will calculate the MIN/MAX based on the values that you entered. See example.
On the Parameter Set-up portion of the spreadsheet, enter the Ave monthly demand of the part the from Stock record. Enter the Days between orders, lead time and safety coefficient from the Reorder Category (these are the fields that are used to calculate your min/max).
This part number has a reorder category of A, so using those values from Reorder Category A and entering them on the spreadsheet, the calculated result for MIN is 7 and MAX is 8.
This spreadsheet also tells you how many weeks you will run out if you keep your stock to a min or a max if you do not re-order. In this example, you will run out of stock in 1.39 weeks if you keep the stock to a minimum (7).
Using this spreadsheet, you can plan and set the 3 parameters in the Reorder Categories accordingly.
