14. Minimum and maximum stock

Efficient inventory management is a crucial aspect for the success of any business, whether small, medium or large. Within this context, understanding the concepts of minimum and maximum stock is essential to avoid problems such as lack or excess of goods, which can result in financial losses or lost sales opportunities.

Minimum stock, also known as safety stock, is the minimum quantity of products that a company must have in its stock to ensure continued sales, even in the face of unforeseen events that may affect replenishment. , such as delivery delays from suppliers or an unexpected increase in demand. This stock acts as a kind of "safety cushion", preventing the company from running out of products to sell.

The definition of minimum stock must take into account several factors, such as the time required to replenish stock, sales volume, seasonality and storage capacity. It is important to remember that a very low minimum stock can result in a lack of products, while a very high minimum stock can lead to a waste of resources, as the company will be investing in products that will remain in stock for a long time.

To calculate the minimum stock, it is possible to use the following formula: EM = (D x P) + ES, where EM is the minimum stock, D is the daily demand, P is the replenishment period in days and ES is the safety stock.

Maximum stock, on the other hand, is the maximum quantity of products that a company can store in its inventory. The maximum inventory is defined based on the company's storage capacity and the capital available for investment in inventory. Maintaining a very high maximum inventory can result in high storage costs and the risk of product obsolescence, while a very low maximum inventory can lead the company to lose sales opportunities due to lack of products.

To calculate the maximum stock, it is possible to use the following formula: EM = (D x P) + ES, where EM is the maximum stock, D is the daily demand, P is the replenishment period in days and ES is the safety stock.

In summary, efficient inventory management involves properly defining minimum and maximum stock levels. These levels must be reviewed periodically, taking into account changes in demand, replacement times and storage capacity. Furthermore, it is important to have stock control tools that allow you to monitor these levels in real time and make quick and assertive decisions.

Understanding and correctly applying the concepts of minimum and maximum stock is an essential skill for any professional who wishes to work in the area of ​​inventory management and merchandise replacement. By mastering these concepts, the professional will be able to contribute to the company's operational efficiency, customer satisfaction and the financial health of the business.

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