Minimum and Maximum Stock Levels – Standard Operating Procedure

1) Purpose

To establish guidelines for setting and maintaining minimum and maximum stock levels to ensure optimal inventory management, prevent stockouts, and avoid overstocking within the pharmaceutical manufacturing department.

2) Scope

This SOP applies to all inventory items, including raw materials, packaging materials, finished goods, and consumables used in pharmaceutical manufacturing and distribution.

3) Responsibilities

Production Planner: Responsible for determining stock levels based on production schedules and demand forecasts.
Warehouse Manager: Responsible for monitoring and adjusting stock levels to maintain balance between supply and demand.

4) Procedure

4.1) Stock Level Assessment:
4.1.1) Analyze historical consumption data, production schedules, and demand forecasts to determine optimal stock levels.
4.1.2) Consider factors such as lead times, storage capacity, and economic order quantities (EOQ).

4.2) Minimum Stock Levels:
4.2.1) Set minimum stock levels based on consumption rates, lead times, and safety stock requirements.
4.2.2) Ensure minimum stock levels are sufficient to prevent stockouts during normal operations.

4.3) Maximum Stock Levels:
4.3.1) Establish maximum stock levels to avoid overstocking and minimize carrying costs.
4.3.2) Consider shelf life, storage conditions, and production capacity