Two-Bin Inventory Control
Categories: Accounting
You want to keep plenty of macaroons available at your book club meeting. Last time you ran out, and there was a near riot. So you've worked out a plan. You're going to buy two packages. You'll empty that package onto the plate and put it next to the brie and mini-quiches. When that plate is empty, you'll refill it with the second package. Then you'll immediately go out and buy some more.
You are using a two-bin inventory model.
It's an inventory control system meant to ensure you always have proper inventory on hand for production. Once the first bin is empty, you switch to the second bin, while quickly replacing it. The goal is to never run out of the stuff you need, by having extra, and by having a clear process that triggers you to order more.
