Inventory Management in TrulinX:
A Guide to Choosing the Right Buying Method
Efficient inventory management isn’t just about keeping shelves stocked. It’s also about finding the balance between meeting customer demand, controlling costs, and supporting profitability. In TrulinX, multiple buying methods help distributors purchase smarter.
While automation drives the math, it’s the distributor’s market knowledge of industry trends, customer behavior, and supplier realities that ensures the right methods are applied at the right time. In this article, we’ll break down the different buying methods available and provide information to help you determine which is the right fit for your operation.
5 Inventory Optimization / Management Methods for Distributors
1. Min/Max Buying Method
The Min/Max method is one of the simplest approaches to inventory control. When stock drops to or below a defined minimum, you replenish up to the maximum level. The “min” answers when to buy, and the “max” answers how much to buy.
This method is ideal for low-usage items, walk-in counter trade, and new products until demand patterns are better understood. However, it doesn’t automatically adapt to changes in customer demand or supplier lead times, so it requires occasional reviews and adjustments.
2. Target Turns
Target Turns focus on how many times your inventory turns over per year. This method is calculated as:
- Annual Cost of Goods Sold ÷ Average Inventory Value
Higher-turn items are purchased in smaller, more frequent quantities, while lower-turn items are bought in larger, less frequent orders. A-items typically have more turns than B- or C-class items. As a guideline, aim for 5–6 turns annually in central warehouses and 10–12 turns in branch locations.
3. Economic Order Quantity (EOQ)
EOQ is designed to find the sweet spot between order cost and carrying cost.
- Order cost includes creating purchase orders, receiving, inspection, and invoice processing.
- Carrying cost covers expenses such as storage, insurance, taxes, obsolescence, and the opportunity cost of capital tied up in inventory.
The EOQ formula calculates the most cost-effective order size, with results adjusted by your minimum and maximum buy parameters. This method works best when paired with accurate demand forecasting.
4. Order Up To
The Order Up To method replenishes stock when inventory reaches the reorder point, buying enough to reach that point plus extra for the review cycle.
This approach can be useful for volatile, fast-changing items that require close attention. However, it is generally less efficient for the majority of your inventory.
5. Seasonal Buying
The Seasonal Buying Method anticipates busy periods by increasing inventory in advance of peak demand and scaling back as the season winds down. In TrulinX, this strategy leverages Forecasted Monthly Demand (FMD) and Monthly Actual Demand (MAD) to detect demand trends.
When demand climbs, the system recommends increasing stock levels gradually to ensure availability during peak sales. As demand tapers off, it prompts you to reduce purchasing by avoiding overstock, minimizing excess inventory, and preventing dead stock. This proactive ramp-up and controlled wind-down help maintain strong service levels while keeping capital free for other needs.
Visual Comparisons of Buying Methods
Buy Method Checklist: Criteria for How & When to Apply Each Method
| Method | Best For | When to Apply | Limitations |
| Min/Max | Slow-moving, high-dollar items, counter sales, new products | Use sparingly; review quarterly | Doesn’t adapt to forecast or demand; risk of overstock |
| Target Turns | High-volume predictable sellers, A/B items, branch locations | Balance service & efficiency; adjust seasonally | Requires accurate classification |
| EOQ | Stable demand items, commodities, fabrication materials | Use with accurate forecasts for bulk purchasing | Depends on accurate demand data |
| Order Up To | Volatile, fast-moving items needing close oversight | High-visibility products; reviewed frequently | Labor-intensive; risk of overbuying |
| Seasonal Buying | Seasonal industries (construction, ag, etc.) | Ramp up before peak; scale back after | Requires demand history and trend analysis |
Final Thoughts: Buy Method Best Practices for TrulinX Users
TrulinX empowers distributors to modernize their inventory management practices and improve efficiency. The following tips can help your business improve your inventory management through our sophisticated software.
- Avoid relying heavily on Min/Max except for slow movers.
- Pair Seasonal Buying with Forecast-based methods like EOQ or Target Turns.
- Classify inventory (ABC/XYZ) before assigning methods.
- Review settings quarterly, especially after major demand changes.
- Leverage TrulinX automation but train buyers to monitor trends and exceptions.
Inside TrulinX, the seasonal buying approach works best with those inventory buying methods that use forecast-based methods such as EOQ or Target Turns. These methods automatically adjust buy quantities based on FMD and MAD trend analysis.
- EOQ + Forecasting: Dynamically scales order quantities as demand rises before peak season and reduces them afterward.
- Target Turns: Can be fine-tuned for higher turnover in busy months and lower turnover during slower periods.
In short: Best forecasting-driven support – EOQ or Target Turns parameters.
Ready to better control your inventory? Request a free demo of TrulinX today to see how our software gives you the tools to more effectively manage inventory and improve your bottom line.