Two-Bin Inventory Control


DEFINITION of 'Two-Bin Inventory Control'

An inventory control system used to monitor the quantity of an item left behind. The two-bin inventory control method is mainly used for small or low value items. For example, when items in the first bin have finished, an order is placed to refill or replace these items. The second bin is supposed to have enough items to last until the placed order arrives. The first bin has a minimum of stock and the second bin keeps reserve stock or remaining material. Bin cards and store ledger cards are used to record the inventory.

BREAKING DOWN 'Two-Bin Inventory Control'

This system is used for material control, which is basically the control of materials. This is a cost effective method where the goal is to save money and use it to order more materials. It is used to control overstocking and under-stocking issues and keep track of miss-management of material.

This method is also referred to as kanban, in the United States.

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