Why Are My Min & Max the Same?
Understanding Min/Max Behavior in Recurrency
In some cases, you may notice that the recommended minimum (Min) and maximum (Max) stock levels are set to the same value in Recurrency. This behavior depends on whether the item is sparse or non-sparse and how key inventory parameters are configured.
Sparse vs. Non-Sparse Items
Sparse Items: The Min and Max are always the same because the goal is to maintain a fixed number of months of demand in stock.
Non-Sparse Items: The Min and Max will only be equal when the calculated Max is lower than the Min. In this case, both values are set to be the same.
How This Affects Reordering
When stock drops below the Min, you will be prompted to reorder—but only up to the Max.
If net stock is at the Min level, you won’t be prompted to reorder, as there’s no difference between Min and Max.
Why Does This Happen?
Non-Sparse Min and Max recommendations share two common inputs:
Lead Time
Safety Stock
Any changes to these inputs will increase or decrease both the Min and Max in the same direction. For example, increasing Safety Stock will raise both values by the same amount.
However, there is one key difference:
Min is influenced by the Order Cycle (how often you reorder).
Max is influenced by Economic Order Quantity (EOQ) (the most cost-effective order size).
How to Create a Gap Between Min and Max
If you want to increase the difference between Min and Max, you can adjust the following settings:
Reduce the Order Cycle (Lowers Min)
Allows for more frequent reordering, reducing the Min.
Note: This applies to all items in a Supplier-Location group.
Adjust EOQ Settings (Increases Max. Only Admins can do this):
If Max values seem too low across multiple items, EOQ settings may be promoting smaller, more frequent orders. To encourage larger, less frequent orders:
Increase replenishment cost – The system will favor larger, less frequent orders.
Decrease holding cost – Encourages maintaining higher stock levels.
Recommended Approach
If some items have the same Min and Max and you want to create a gap between them, the best approach is to ensure the Min is lower than the Max.
The most effective way to achieve this is by adjusting the Order Cycle, which will reduce the Min.
💡 However, keep in mind that this change will apply to all items within the same supplier-location pair, lowering the Min across all affected items.
Steps to Adjust Min/Max:
Test an Order Cycle update on 1-2 items first to see if it increases the gap between Min and Max.
If this doesn’t resolve the issue and you notice the same Min/Max behavior across multiple items, it may indicate a need for broader EOQ adjustments.
In that case, consider modifying your EOQ settings to encourage larger, less frequent orders.
Automatic Min/Max Separation with EOQ Adjustment
If you prefer for Min and Max to always be different for non-sparse items, Recurrency provides you with a setting that can be enabled upon request. This setting helps create separation between your Min and Max levels across all items except for Sparse.
How it works:
When this setting is turned on, Recurrency will automatically ensure that in cases where your Min equals Max, we add the EOQ (Economic Order Quantity) value to the Min and use the sum as your Max.
For example:
MOQ takes precedence:
If a Minimum Order Quantity (MOQ) is defined for the item, the MOQ value will take precedence over the EOQ adjustment.
Sparse demand items are unaffected:
This setting does not change the behavior of items with a sparse demand pattern. As Sparse Items focus on keeping a number of months in stock at all times, they will continue to follow their existing logic.
Why is this helpful?
This is particularly beneficial if you are not using Recurrency Purchasing.
In native ERP purchasing workflows, having Min = Max can cause inefficient behavior, with the system prompting you to replenish one unit every time you sell one unit.
By introducing separation between Min and Max, this feature prevents unnecessary purchase prompts.
If you are using Recurrency Purchasing, Min = Max is generally not an issue because Recurrency purchasing is based on your target or review cycle rather than one-to-one replenishment.