Definition
The volume and period ceiling table given by A/B/C is used to see the upper limit of the water level set by the plate.
In detail
Ideal Inventory Policy is a table of capacity and lead time limits set based on A/B/C classification, used to guide Kanban level settings. It addresses the problem of unreasonable inventory levels, avoiding too high or too low. The difference from the Kanban system is that it sets rules, while Kanban is an execution tool. Typical outputs include inventory upper limits and replenishment cycle recommendations for various materials.
Example in practice
In warehouse management, the team classifies materials by annual usage value: Class A is the highest-value head items, with a container size target under 5 days of usage and lead time under 5 days (a deliberately aggressive stretch target); Class C is relaxed to 20 days of usage and 15 days of lead time. Kanban quantities are adjusted according to this policy, improving inventory turnover while avoiding stockouts.