Min/max inventory for small shops

Min/max is the simplest inventory policy that actually works. When stock drops to the minimum, you reorder up to the maximum. That's it. The hard part is picking the numbers.

Setting your minimum

Your minimum is whatever you'd burn through during the time it takes to get more. If a part takes two weeks to arrive and you use ten a week, your minimum is at least twenty — plus a small buffer for the day a supplier ghosts you.

Setting your maximum

Your maximum balances bulk-discount savings against the cost of cash sitting on a shelf. For cheap, fast-moving parts, buy in volume. For expensive or slow-moving parts, keep the max tight.

Review quarterly, not constantly

Usage patterns drift. Once a quarter, scan your SKUs and adjust min/max for anything that's been over- or under-stocked. Don't tweak after every order — you'll chase noise.