Maximum/Minimum Settings As Proprietary System
The in-store logistics managers use an inventory replenishment management process developed by IKEA called ‘minimum/maximum settings’ to respond to store-level inventory reorder points and reorder products.
Minimum settings: The minimum amount of products available before reordering.
Maximum settings: The maximum amount of a particular product to order at one time.
Due to the fact that all IKEA inventory is only stocked at night after opening hours, the logic of its min/max settings is based on the number of products that will be sold from the reserve stack of bin in a single day or two-day period. The process meets customer demand while minimising ordering too few or too many products.