InskeepMin/Max Inventory Planning: Set Reorder and Target Stock Levels
Min/max planning gives each replenishable SKU two boundaries: a minimum inventory position that triggers review and a maximum target that determines the starting purchase quantity.
What minimum and maximum mean
The minimum is usually a reorder point rather than the lowest physical quantity a business is willing to hold. When inventory position reaches it, the buyer needs enough time to approve, place, receive, and process a new order before the remaining supply is consumed.
The maximum is a replenishment target, not a permanent ceiling. It represents the stock position the new order should restore, subject to case packs, supplier minimums, cash, shelf space, and demand changes.
Set a target that matches the buying cadence
A team that reviews a supplier every seven days needs enough stock to cover both replenishment lead time and the interval until the next review. Omitting the review cycle can produce repeated small orders or leave the SKU exposed immediately after receipt.
For vendors ordered on a fixed schedule, group eligible items by vendor so minimum order values, freight economics, and case packs can be evaluated together.
Calculate the suggested purchase quantity
Inventory position should include on-hand and credible incoming supply, then subtract reservations and backorders. If the result is below the minimum, replenish toward the maximum and round according to the supplier's valid ordering constraints.
Do not automatically round every recommendation upward. A large case pack can create significant excess inventory, so show the unrounded need and the constraint-driven quantity to the buyer.
Worked example
Where min/max rules need buyer judgment
- New products without representative demand history
- Seasonal products approaching a demand change
- Intermittent products with long gaps between sales
- End-of-life inventory and superseded SKUs
- Large promotions, contracts, or known one-time demand
- Late purchase orders that should not be treated as reliable incoming supply
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