minmaxvarastointi

Minmaxvarastointi, also known as min-max inventory control or two-bin system, is a method for managing inventory levels. It involves setting a minimum stock level and a maximum stock level for each item. When the inventory of an item falls to or below the minimum level, an order is placed to replenish the stock. The quantity ordered is typically calculated to bring the stock level up to the maximum. This ensures that there is always enough inventory to meet demand without holding excessive stock.

The primary goal of minmaxvarastointi is to balance the costs associated with holding too much inventory against the risks of stockouts. Holding excess inventory incurs costs related to storage, insurance, obsolescence, and potential damage. Conversely, running out of stock can lead to lost sales, decreased customer satisfaction, and production delays. The minmax system aims to find an optimal balance between these competing factors.

Implementing minmaxvarastointi requires careful determination of the minimum and maximum levels. The minimum level is often set based on lead time demand, meaning the expected demand during the time it takes for a new order to arrive. The maximum level is determined by factors such as order quantities, storage capacity, and desired safety stock. Regular review and adjustment of these levels are crucial to adapt to changes in demand, lead times, or operational costs. This system is particularly effective for items with relatively stable demand patterns.