What is min-max ordering

Min-Max ordering is a method of inventory management that involves setting minimum and maximum levels of inventory for each item in a business's inventory. The minimum level is the reorder point, or the level at which the business should place an order for more of that item. The maximum level is the highest level of inventory that the business should maintain for that item.

When the inventory level of an item drops to the minimum level, it triggers an order for more of that item. The replenishment order then brings the inventory level back up to the maximum level. 

Min-max ordering is simple and efficient, as it can easily me automated. The problem with this ordering method is that any changes in supply and consumption can lead to understocks or overstocks, when the min and max levels are not continuously adjusted to always meet demand without reating redundancy. 

Retailisation's dynamic buffer management algorithms recalculate the new ideal economic inventory (On Hand + OnOrder + In Transit) every day and continuously adapts to the new supply- and consumption realities to maintain high supply chain throughput.