Maximum Stock Level
Highest inventory quantity before ordering more.
Formula
Maximum Stock Level = Reorder Level + Reorder Quantity − (Minimum Daily Usage × Minimum Lead Time)
Real World
Tesco limits how much frozen food it holds in each store's walk-in freezer; exceeding that maximum wastes electricity and risks spoilage, so orders are capped accordingly.
Exam Focus
In stock control diagram questions, correctly label the maximum level as a horizontal line and state why exceeding it raises holding costs.
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