Glossary > —E— > Excess Limit
Excess Limit
The limit above which inventory is considered in excess. The calculation of Excess Limit is in relation to the Order Policy Type that is used:
When using Trigger Point, it is calculated as Stock Maximum
When using Time Phased it is calculated as (Safety Stock + EOQ – 1)
This can be increased if order sizing or Excess Burnout Days are used.
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