The Minimum Quantity (Min Qty) field represents the lowest quantity that should be on hand before the item is replenished (sometimes referred to as the "order point").
The point at which Inventory items should be replenished is when the sum of the Qty On Hand and Qty On Order is less than the specified Minimum Quantity.
Several Keystroke functions use this calculation to determine when items should be replenished including: The Auto Order function (located on the Purchase Manager Special Menu), the Inventory Database Report with the Detail setting on Critical List, and the Case Break-Down feature (which uses the Parent field and Multiplier field).
The purpose of these functions is to help control Inventory levels by providing a means of automatically replenishing items. When determining the appropriate Minimum Quantity for an item, consider both the consumer demand and the time it takes to actually receive item from the Vendor.
Inventory Database - Quantity Fields
Inventory Database - Order Data Screen Fields