What is Smart Min/Max?
Smart Min/Max is Ply's AI-powered inventory optimization feature that automatically calculates optimal minimum and maximum stock levels for each location. Instead of manually setting fixed stock levels, Smart Min/Max analyzes your actual usage data to recommend levels that balance inventory availability with capital efficiency.
Smart Min/Max offers two different calculation methodologies to suit your business needs:
Demand Forecast: Uses historical usage + predicted future demand (recommended)
Rolling Calculation: Uses simple 30-day average of past consumption
You'll find this feature under Settings > Procurement > Smart Min/Max.
Demand Forecast Methodology
Demand Forecast is the more advanced method. It intelligently predicts your inventory needs by analyzing the last 8 weeks of actual consumption and forecasting the next 4 weeks of demand.
How It Works
1. Historical Usage Analysis (Last 8 weeks)
Weekly usage rates for each material
Seasonal variations and demand spikes
Lead times from suppliers
Day-of-week usage patterns
2. Demand Prediction (Next 4 weeks)
Trending consumption patterns
Seasonal business fluctuations
Supplier lead times
Expected usage variations
3. Optimal Level Calculation
Minimum stock to cover demand until reorder arrives
Safety buffer for unexpected spikes
Maximum stock to minimize excess inventory
Capital efficiency based on coverage level
Understanding the Chart
The Demand Forecast visualization shows:
Gray Bars - Actual usage last 8 weeks
Green Shaded Area - Predicted demand next 4 weeks
Green Line (Min) - Minimum stock to maintain
Dashed Line (Max) - Recommended maximum
Orange Line - Weeks you might run short
Choosing a Coverage Level
Demand Forecast offers three coverage levels - each represents a risk/efficiency tradeoff:
Lean
~85% of weeks you'll have enough stock
Best for: High-turnover items; tight cash flow
Stock amount: ~30% less than Balanced
Balanced ⭐ (Recommended)
~90% of weeks you'll have enough stock
Best for: Most trade service businesses
Stock amount: Standard level
Protected
~92% of weeks you'll have enough stock
Best for: Critical items; seasonal businesses
Stock amount: ~25% more than Balanced
Rolling Calculation (Alternative Methodology)
Rolling Calculation is a simpler approach that calculates min/max based on your 30-day average usage.
Best for: Steady-state businesses with predictable demand
Less sophisticated than Demand Forecast
Updates more frequently based on recent usage
Enabling Smart Min/Max with Demand Forecast
Step 1: Navigate to Settings
Go to Settings > Procurement > Smart Min/Max
Step 2: Select Demand Forecast
Under Set methodology, select Demand Forecast (instead of Rolling Calculation)
Step 3: Choose Coverage Level
Select Lean, Balanced, or Protected based on your risk tolerance
Step 4: Configure Update Method
Suggest Adjustments - Review recommendations before applying
Adjust automatically - Apply changes immediately
Reviewing Recommendations
If you have "Suggest Adjustments" enabled, you can check the suggestions and approve/deny them.
Go to Settings > Procurement > Smart Min/Max
Click on Set Up Materials
For each recommendation, you'll see:
Old Min/Max (current settings)
New Min/Max (Demand Forecast recommendation)
Current quantity on hand
Click Accept or Decline for each item
Best Practices
Start with Balanced coverage and adjust based on results
Check Min/Max Updates weekly
Accept recommendations for high-use items
Manually manage slow-moving stock
Recalculate after major operational changes
Enable notifications for pending recommendations
Common Questions
How much historical data is needed?
At least 4-8 weeks. New locations may have limited recommendations until data accumulates.
Can I override recommendations?
Yes. You can Accept or Decline any recommendation, and manually edit min/max values anytime.
What if I'm seasonal?
Demand Forecast learns seasonal patterns over time. Use Protected coverage during peak seasons while it learns.
Does it account for lead times?
Yes. Lead times from suppliers are factored into minimum calculations.
What's the difference from Rolling Calculation?
Demand Forecast is more predictive (uses future forecasts), while Rolling Calculation is reactive (uses 30-day average).
Still have any questions?