For certain products, you may want to set a hardcoded inventory floor. By using the Min/Max function in Item Plan, you can generate a receipt plan that ensures your inventory position remains above a minimum threshold.
While it is generally recommended to use Safety Stock Weeks for most receipt planning workflows, an example of when you may want to utilize the Min/Max feature would be to ensure that a minimum threshold of inventory is kept on hand to support last minute marketing efforts.
Please read more to better understand how the Min/Max function works within the Generating Receipts workflow in Item Plan.
Before using the Min/Max function, please first review the Generating Receipts workflow in Item Plan here. In order to utilize Min/Max, you will need to make sure that the core inputs of the Generate Receipts function are defined. You can read more about Time Frame, Order Cycle Start Date, Order Cycle, Lead Time, Safety Stock Weeks, MOQ, and MOQ Group in the link above.
With the Generate Receipts menu open, you will see a checkbox titled "Enable Min/Max." After toggling this function, you will be prompted to input a Minimum Units value along with a Min/Max Group.
The minimum number of units of the Min/Max Group that should be maintained for the time frame configured.
The level/scope at which the Minimum Units are defined. Please select from Style, Color, or Size.
In the example above, we are defining a Minimum Units of 1,000 at the Style level. This means that upon running the Generate Receipts function, a Receipt Plan will be created that ensures at least 1,000 units of the selected style(s) are maintained as an inventory minimum. Please note that Toolio will automatically distribute the Style level minimum down to the Color/Size level by referencing the Color/Size distribution established by the Gross Sales Unit forecast for these style(s).
Additionally, please also note that Safety Stock Weeks are still accounted for when using Min/Max in the Generate Receipt workflow. In instances where the Safety Stock Weeks input results in a higher inventory target than the Minimum Units input, Toolio will use the Safety Stock Weeks to build a receipt plan. In the above example, we have a Safety Stock Weeks input of 4, and a Minimum Input of 1,000 units defined to the Style level. If the Gross Sales Unit Plan for the style sums to 1,500 units for the next 4 weeks, Toolio will use 1,500 as opposed to 1,000 units as the inventory floor.