What is a Min/Max policy? How do you know is working well for you? Smart IP&O gets Min/Max right!
The Min/Max inventory policy is one of four available Replenishment methods in SIO. When the inventory level drops to or below the Min, a replenishment order is generated. The reorder quantity is the number of units needed to raise the stock up to the Max. How do you know your Min/Max settings are working well and triggering replenishment orders at the right time and for the right quantities? If you are like most companies, setting Min/Max levels is based on rules of thumb or simple averaging techniques that don’t expose the trade off curve between service level and inventory cost. This makes it impossible to predict which items are likely to have overstocks and shortages in the future. In this Video Blog we elaborate on this and describe how Smart Inventory Optimization can help.
Related Posts
![12 Causes of Overstocking and Practical Solutions](https://smartcorp.com/wp-content/uploads/2024/09/12-Causes-of-Overstocking-and-Practical-Solutions-WEB-1080x675.jpg)
12 Causes of Overstocking and Practical Solutions
Managing inventory effectively is critical for maintaining a healthy balance sheet and ensuring that resources are optimally allocated. Here is an in-depth exploration of the main causes of overstocking, their implications, and possible solutions.
![FAQ: Mastering Smart IP&O for Better Inventory Management.](https://smartcorp.com/wp-content/uploads/2024/08/FAQ-Mastering-Smart-IPO-for-Better-Inventory-Management-1080x675.jpg)
FAQ: Mastering Smart IP&O for Better Inventory Management.
Effective supply chain and inventory management are essential for achieving operational efficiency and customer satisfaction. This blog provides clear and concise answers to some basic and other common questions from our Smart IP&O customers, offering practical insights to overcome typical challenges and enhance your inventory management practices. Focusing on these key areas, we help you transform complex inventory issues into strategic, manageable actions that reduce costs and improve overall performance with Smart IP&O.
![Innovating the OEM Aftermarket with AI-Driven Inventory Optimization](https://smartcorp.com/wp-content/uploads/2024/08/Innovating-the-OEM-Aftermarket-with-AI-Driven-Inventory-Optimization-XL-1080x675.jpg)
Innovating the OEM Aftermarket with AI-Driven Inventory Optimization
The aftermarket sector provides OEMs with a decisive advantage by offering a steady revenue stream and fostering customer loyalty through the reliable and timely delivery of service parts. However, managing inventory and forecasting demand in the aftermarket is fraught with challenges, including unpredictable demand patterns, vast product ranges, and the necessity for quick turnarounds. Traditional methods often fall short due to the complexity and variability of demand in the aftermarket. The latest technologies can analyze large datasets to predict future demand more accurately and optimize inventory levels, leading to better service and lower costs.