Looking at warehouse management strategies by calculating Max–Min Stock. that leads to high efficiency of warehouse

In the era of fast-growing online business Warehouse management is an important thing that must be meticulous. We have found that product stock calculations are often inconsistent with reality. Therefore, we will share some tips on how to properly use the Min Max Stock formula to optimize stock management.

 

What is Min-Max Stock? 

Continuing from Safety Stock to create more understanding, I would like to explain more about minimum and maximum warehouse management or what is Min – Max Stock?

• • Minimum Stock is the lowest number (Min) that the product should be in stock, which is counted as a unit according to the product list. For example, Mr. A’s shop sells 10 spare tires for Model A per day. Therefore, the Min value of Model A car spare parts should be It’s at 10 pieces.
  • Maximum Stock is the maximum number (Max) that the product should be in stock and should not be more than this because it may pose a risk to the old warehouse. Including increasing the risk of high losses.

 

How to calculate Max-Min Stock

 

Minimum inventory = (Maximum daily usage * Maximum lead time in days) – (Average daily usage * Average lead time in days)
New Orders = (Items sold per day) x (Days required for new inventory to arrive) + Minimum Inventory or Bumper Product (Safety Stock)
Example: An auto parts store sells 75 items per day and takes 8 days from the time a new order is placed. to wait for new products to arrive During weekends and bank holidays Can sell up to 85 bags and maximum lead time is 10 days.

Minimum inventory = (85 x 10) – (75 x 8) = 250
New order = (75) x (8) + (250) = 850
So,  when the stock level reaches 750 bags, the store can place an order. This will at least save the customer from having to cancel their purchase and look elsewhere.

 

Concluding with factors that should be taken into account in calculating risk factors, which are: Popular trends Consumer needs at that time, cost of renting a place to store products Including warehouse maintenance costs Insurance for various products, including the company That takes care of how reliable the warehouse is and safety is the main key that helps prevent damaged assets. Or there is an unexpected event such as a fire.

 

Calculating Max Min Stock is therefore quite important for arranging inventory to get the maximum and minimum quantities just right, which can be started by collecting data for each type of product. Find the average product Review and look at the highest and lowest sales numbers to consider and adjust the plan accordingly. We must not forget other factors that may affect the calculation, such as popular trends. consumer needs Including various factors that will help make stock management more efficient.

 

But if you are not sure about the calculation method Or if you need someone with expertise to manage your Min – Max inventory more efficiently, you can consult Easetrack, an assistant who will make your inventory management a success.