PROFESSIONAL REFERENCE ยท INVENTORY CONTROL

Inventory Control Systems

A complete practical reference for selecting, designing and operating replenishment and inventory-control systems across stores, MRO, production, warehouse and line-side environments.

01

Inventory Control Systems Fundamentals

Inventory control systems determine how stock is monitored, when replenishment is triggered, how much is replenished, and how exceptions are controlled.

02

Continuous Review System

A continuous review system monitors inventory position continuously and triggers replenishment when the control point is reached.

03

Periodic Review System

A periodic review system checks inventory at defined intervals and replenishes according to the required inventory position.

04

Fixed Order Quantity System

The fixed-order-quantity method replenishes a standard quantity whenever inventory position reaches the replenishment trigger.

05

Fixed Order Interval System

The fixed-order-interval method reviews stock at predetermined intervals and determines the replenishment quantity at each review.

06

Min-Max Control System

Min-Max control establishes a minimum/reorder level and a maximum target, with replenishment used to restore inventory toward the maximum.

07

Reorder Point Control

Reorder Point control triggers replenishment when inventory position reaches the expected demand during lead time plus the required protection stock.

08

Two-Bin System

The Two-Bin System separates available stock into a working bin and a reserve/replenishment bin to create a simple visual trigger.

09

Three-Bin System

The Three-Bin System separates stock into current-use, reserve and incoming/replenishment-status quantities for clearer visual control.

10

Kanban System

Kanban is a visual pull-control mechanism that authorizes replenishment or production based on actual consumption and defined container signals.

11

Pull System

A pull system replenishes material because downstream consumption creates a requirement rather than because upstream supply is pushed by forecast alone.

12

Push System

A push system releases material based primarily on planned requirements, forecasts, schedules or predetermined supply decisions.

13

Push-Pull Hybrid System

Hybrid control combines planned upstream supply with downstream pull signals where each part of the material flow has different planning characteristics.

14

JIT Inventory Control

Just-in-Time inventory control seeks to make material available close to the time and place of use while reducing unnecessary inventory and process waste.

15

Order-Up-To System

The order-up-to system replenishes inventory toward a defined target level after each review or demand event.

16

Base Stock System

A base-stock system maintains a defined inventory position or stock level appropriate to the service requirement and replenishment lead time.

17

Visual Replenishment

Visual replenishment uses physical or digital signals such as cards, bins, labels, boards and status indicators to initiate replenishment.

18

Point-of-Use Inventory

Point-of-use inventory positions required materials close to the operation or workstation while controlling quantity and replenishment.

19

Line-Side Inventory

Line-side inventory supports production directly at the line while balancing availability, space, handling effort and inventory exposure.

20

Supermarket Inventory System

A supermarket system holds controlled replenishment stock at a defined location from which downstream users withdraw material and create a replenishment signal.

21

Milk-Run Replenishment

Milk-run replenishment uses scheduled collection and delivery routes to replenish multiple points of use with controlled frequency and quantities.

22

Replenishment Parameters

Replenishment parameters include demand, lead time, safety stock, reorder point, minimum, maximum, order quantity, review period and service target.

23

Inventory Position

Inventory position considers on-hand stock together with relevant open receipts and demand commitments when determining replenishment status.

24

Replenishment Quantity

Replenishment quantity is the amount required to restore the inventory position toward the applicable target while respecting practical constraints.

25

Service Level Control

Service-level control links replenishment parameters to the required probability or frequency of meeting material demand without stockout.

26

Stockout & Exception Control

Exception control identifies shortages, overdue receipts, abnormal consumption, parameter failures and other conditions requiring management action.

27

Control System Selection

Control-system selection should consider demand pattern, value, criticality, lead time, variability, consumption visibility, space and operational practicality.

28

MRO Inventory Control Systems

MRO control applies replenishment methods to maintenance, repair and operating materials while accounting for criticality, intermittent demand and equipment risk.

29

Kanban Container Sizing

Kanban container sizing determines the practical quantity and number of containers required to sustain consumption during replenishment lead time and variation.

30

Two-Bin vs Kanban

Two-Bin and Kanban both use visual replenishment signals, but their control logic, authorization mechanism and operating context can differ.

31

Inventory Control Systems in Excel

Excel can model inventory position, triggers, targets, replenishment quantities, exceptions and performance for controlled material populations.

32

Inventory Control Systems in ERP

ERP systems support replenishment parameters, planning signals, stock status, open orders, reservations and exception reporting.

33

Inventory Control KPIs

Inventory control performance can be monitored through availability, stockout rate, service level, fill rate, inventory accuracy, coverage and replenishment adherence.

34

Inventory Control Governance

Governance defines ownership, parameter review frequency, master-data standards, approval rules, exception escalation and audit controls.

35

Industrial Inventory Control Case Framework

A practical framework for selecting and implementing an inventory control method across MRO, production, stores and line-side materials.