Maximum Stock Level
Highest inventory quantity before ordering more.
Formula
Maximum Stock Level = Reorder Level + Reorder Quantity − (Minimum Delivery Period × Minimum Daily Usage)
Real World
Tesco sets a maximum stock level for bottled water in each store based on shelf space and chilled storage capacity, preventing overstocking that ties up capital.
Exam Focus
Show all workings in stock control calculations; marks are awarded for method even if the final answer is wrong.
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