Inventory glossary

What is Min max inventory?

Min max inventory is a replenishment method where you set a minimum stock level that triggers reordering and a maximum level you never order above.

For a small Shopify store, min max inventory keeps reordering simple. You pick a floor for each SKU based on how fast it sells and how long the supplier takes, and a ceiling based on how much cash and shelf space you want tied up in that product. When stock hits the minimum, you order enough to bring it back up to the maximum, not more.

This works well when you sell steady, easy-to-predict items like basic t-shirts or coffee bags. It works less well for seasonal or spiky products, where a fixed min and max can leave you short in peak weeks or overstocked in slow ones. Many stores review their min and max numbers every few months as sales change.

Formula

Order quantity = Max level - Current stock on hand (when stock falls at or below Min)

Example

A candle store sets min 40 and max 120 units for its bestselling scent. Stock drops to 38 units, which triggers a reorder. The order quantity is 120 - 38 = 82 units. The supplier sells in cases of 10, so the owner orders 80 units (8 cases), bringing stock to 118 and staying under the max.

Common mistakes

  • Setting min too low for the supplier's actual lead time, causing stockouts before the new order arrives.
  • Setting max too high out of habit, which ties up cash in slow-moving stock.
  • Never updating min and max as sales grow or slow down, so the numbers go stale.

Min max inventory and SteadyShelf

SteadyShelf can flag when a SKU falls to its minimum and suggest an order quantity up to your max, rounded to the supplier's case pack size.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Related terms

Reorder point · Reorder quantity · Par level · Safety stock · Case pack

Full inventory glossary

FAQ

How is min max inventory different from a reorder point?

A reorder point only tells you when to order. Min max inventory adds a maximum, which also tells you how much to order, bringing stock up to that ceiling each time.

How do I choose a max level for a SKU?

Base it on how much stock you can sell before it goes stale or ties up too much cash, often a few weeks to a couple months of expected sales, plus some buffer for demand swings.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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