Min Max is one option - typically for fixed size storage containers e,g. tanks, hoppers.
It is also sometimes used as a 2 bin strategy i.e. when one bin empties you order two more, and the bin size is set to reflect the average usage over the lead time, so that by the time the order arrives the stock is needed.
In many cases it is a better option to use a period coverage, and to also set a minimum as a safety level, or to add safety lead time.
There are different options when recalculating that you will reach a minimum, I.e. the date the system considers it as a demand, and for when it should trigger a planned order e.g immediately, only when there is an actual demand etc.
You can also set minimums by period to reflect seasonality.
Its a big topic and is affected by other mrp parameters. Best is to get a wlak through form a seasoned consultant and then get your hands dirty in a test system and try different set ups.
I suggest read a few blog posts and books e.g try Scott Hamilton's posts and books.
ebeces has a series of introductory mrp posts for example.
You will find informative material if you search in this forum or the respective blogs of contributors, like Tim Adam, Evert, Guy, Steven etc. e.g. community.dynamics.com/.../583605 or timsaxblog.wordpress.com/.../
There also many you tube videos or see Lachlan;s videos on his OrganicAx site e.g. organicax.com/.../
Good luck.
