Min/Max Ordering

The Load from Min/Max function automatically builds a purchase order using the minimum and maximum stock levels defined for each product.

Rather than manually deciding how much to order, Ramsys analyses each item's current stock position and recommends replenishment quantities.

The principle is simple:

• Each item has a Minimum stock level.
• Each item has a Maximum stock level.
• When stock falls to or below the Minimum level, Ramsys recommends ordering enough to bring stock back up to the Maximum level. 

Example

This ensures inventory remains within the desired operating range while minimising manual calculations. 

Advantages of Min/Max Ordering

Using Min/Max ordering can provide significant operational benefits when stock levels have been configured correctly.

• Faster ordering - Purchase orders that previously took hours can often be generated in minutes.
• Consistent ordering - Different staff members will produce similar purchasing decisions, reducing reliance on individual experience.
• Reduced stock-outs - Frequently sold items are automatically replenished before they run out, improving customer satisfaction. 
• Lower inventory investment - Maximum levels prevent excessive stock accumulation, reducing the amount of cash tied up in inventory.
• Better purchasing visibility - Buyers can spend their time reviewing recommendations rather than calculating every order manually.

Potential Pitfalls

Min/Max ordering is an excellent tool, but it is not a substitute for good inventory management.

The quality of the generated order depends entirely on the quality of the underlying data.

• Incorrect Min/Max values - If the Minimum or Maximum levels have been set too low, stock shortages may occur. If they are set too high, excessive inventory may be purchased.
• Changing sales patterns - Seasonal products, promotional items and rapidly changing demand can quickly make existing Min/Max values inaccurate. Review these values regularly.
• Supplier lead time changes - If suppliers begin taking longer to deliver, Minimum levels may need to be increased to maintain adequate stock.
• Slow-moving items - Some products sell very infrequently. Automatically replenishing these can gradually create excess stock that may never sell.

Human judgement is still important. The automatically generated order should always be reviewed before being sent to the supplier.

Experienced buyers may wish to increase or reduce quantities based on:

• Upcoming promotions
• Seasonal demand
• Supplier specials
• Known delivery delays
• Available budget
• Product discontinuations

The best results are achieved when Min/Max ordering is used as a decision-support tool rather than a completely automatic purchasing system. Regularly reviewing stock settings, lead times and sales trends will ensure recommendations remain accurate over time. 

Best Practice

For the most effective purchasing process:

• Review Min and Max levels at least every few months.
• Verify stock accuracy through regular stocktakes.
• Adjust levels for seasonal products before peak trading periods.
• Consider supplier lead times when setting minimum quantities.
• Always review the generated purchase order before submitting it.

When maintained correctly, Min/Max ordering can significantly reduce purchasing time while maintaining excellent stock availability and improving inventory investment.