Maximum level of inventory levels
Give a brief introduction of the term Maximum level of inventory levels?
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This is the topmost level which points to that level of material stock must not exceed this level. If it does, it might involve blocking of funds in inventory which might be employed for some other useful reasons. This level is fixed subsequent to considering following factors: - Maximum Usage
- Lead Time
- Storage facilities accessible
- Prices of material
- Other various costs involved such as insurance, storage cost and so on.
- Accessibility of funds for procurement of materials
- Nature of material
- EOQ
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