Two Bin System & Cyclic System
TWO BIN SYSTEM & CYCLIC SYSTEM
Description also available in video format (attached
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Two Bin System
Introduction
· A system that is used to determine when items or
materials used in the production should be replenished
· When items in the first bin have been depleted, an order
is placed to refill or replace them
· The second bin is then supposed to have enough items to
last until the order for the first bin arrives
· In short, the first bin has a minimum of working stock
and the second bin keeps reserve stock or remaining material
· The two bin inventory control method is also sometimes referred
to as KANBAN
Key Takeaways
· This method is almost always used for small or low value
items that can be easily purchased and stored in bulk
· Bin cards and store ledger cards are used to record the
inventory
· It ensures that companies reduces the inventory risk and
always have the right level of stock to meet the demand
Cyclic
System
Introduction
· It is also known as a Customer Order Cycle
· It refers to the process which includes all of the
elapsed time from the placement of the order until the product is received and
placed into the customer’s inventory
· In logistics: Nothing happens until somebody orders
something
· The components of this system are
o
Order preparation
o
Order transmittal
o
Order receipt
o
Order entry
o
Order processing
o
Order picking
o
Order packing
o
Order transportation
o
Order delivery & Unloading
Factors Affecting Cyclic System
· Processing priorities
· Inadequate stock
· Order filling accuracy
· Order batching
· Shipment consolidation
Video
Description
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