varastokatto
Varastokatto is a Finnish term referring to a policy that sets a ceiling on the amount or value of goods held in inventory. Used in logistics and financial management, the purpose is to limit tied-up capital, reduce storage costs, and minimize risks of obsolescence or spoilage. A varastokatto can be expressed as a monetary value, such as a maximum stock value of a certain euros, or as a physical quantity, such as a cap of a certain number of units for a given item family.
Implementation and management typically involve analyzing historical consumption, lead times, service level targets, and available capital.
Effects and considerations include potential benefits such as improved liquidity, reduced storage costs, and lower risk
Relation to other concepts includes working capital optimization, stock control, just-in-time practices, ABC analysis, and reorder