Planning Inventory Management

Planning Inventory Management

Planning Inventory Management

Is Min/Max inventory management dead? Unfortunately, for many of today’s businesses there seems to be a love affair with the benefits of running a JIT (Just in Time) inventory system. However, most don’t have the volumes or purchasing power to make JIT work and must therefore run a Min/Max system or a variation thereof. Is this a good or bad thing?

There are Several Benefits to Min/Max

Contrary to popular belief, Min/Max isn’t dead and is in fact, the perfect system for companies that operate with cyclical and seasonal demand patterns from customers. They know they’ll get an order, but aren’t entirely sure when. Having that safety stock ensures the company capitalizes on those opportunistic sales.