MANAGEMENT

Detailed explanation-1: -Maximum stock level definition The maximum stock level is the largest number of goods a company can store to provide its customers with service at the lowest possible cost. It’s vital to keep inventory control in line with demand.

Detailed explanation-2: -Stock Level: Type # 2. If the quantity exceeds maximum level limit then it will be termed as overstocking.

Detailed explanation-3: -The maximum stock level indicates the maximum quantity of an item of material which can be held in stock at any time.

Detailed explanation-4: -The minimum stock level of a period is high enough to cover the demands in the following periods within the minimum days’ supply. The maximum stock level of a period is large enough to cover the demands in the following periods within the maximum days’ supply.