Managing your minimum and maximum quantities on product you carry in stock, is the best way to keep your inventory low and money in your bank account
- Display color code that indicates that a parts inventory is less than the minimum, via the POS
- Display a message that indicates that a part in inventory is at its minimum via the POS
- Set minimum and maximum quantity in a product from the inventory
- How to generate automatic purchase order using the minimum quantity
How do I set my min/max quantity, what is the formula :
The Min/Max inventory ordering method is a basic reordering mechanism that is supported by our inventory management software. The “Min” value represents a stock level that triggers a reorder and the “Max” value represents a new targeted stock level following the reorder. The difference between the Max and the Min is frequently interpreted as the EOQ (Economic Order Quantity). And while Min/Max inventory planning is quite a crude method for inventory ordering, Min/Max settings can be dynamically adjusted to offer better inventory performance.
The Min/Max method was one of the earliest automated inventory replenishment methods to be used in shop management software to keep stock low. The primary benefit of this feature is its extreme simplicity of implementation. Pull out your personalized inventory report based on make & model of vehicle that came in the last year for and oil change... Export it to excel and give it to your filter specialist. Great when there is a special on a filter for example.
This method tracks the current total stock level, which is typically the sum of the stock-on-hand plus the stock-on-order for every single SKU. When total stock reaches the Min value, a reorder is triggered. The reorder quantity targets the Max value for the new total stock level, hence the reorder quantity is the difference between Max and Min (i.e. Max minus Min). GEM-CAR offer you another level on inventory status like WIP (Work in progress) and reserved that makes the inventory even more precise.
In its original form, Min/Max ordering was considered to be a fairly static method of inventory control where the Min/Max values were rarely changed, maybe a few times per year. The ABC Analysis was frequently used to guide shop owner to stock.