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Retail Supply Chain lesson

Min/max and order-up-to

Many replenishment systems use min/max. Here the minimum is 2 weeks of sales and the maximum is 4. When stock falls to the minimum or below, order up to the maximum.

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About 5–10 minutes · no sign-up needed

The idea

Many replenishment systems use min/max. Here the minimum is 2 weeks of sales and the maximum is 4. When stock falls to the minimum or below, order up to the maximum:

Formulas

Weekly sales × 4 − On hand

Key points

MinThe trigger: order when stock falls to this level.
MaxThe order-up-to level.
OrderMax − On hand, but only when On hand ≤ Min.

Min/max keeps orders simple: nothing until the trigger, then a full top-up.

Practice

Try each one in your head first, then open the answer.

1. In E2, work out London's order: if on hand (D2) is at or below the min (B2), order max − on hand. Otherwise order 0.
=IF(D2<=B2,C2-D2,0)
2. How many units does Leeds order?
30 on hand ≤ 60 min, so order 120 − 30 = 90 units
3. Tap the store that would get stock if you topped everyone up to 4 weeks, but gets none under min/max.
Bristol: 50 on hand is above its 40 minimum, so no order yet.

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed