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, which is strongly associated with the just-in-time (JIT) method of a manufacturing process.

In a Kanban inventory system, a company can use Kanban cards or bins to signal when stock needs to be refilled. In the Kanban bin system, companies rely on visual cues to start the restocking process. Workers have two containers of inventory and work through the supplies in one bin before moving on to the other.

A two-bin Kanban system aids in lean manufacturing practices to reduce costs and waste in a number of settings, including hospitals, factories, and warehouses. How It Works The system works simply by supplying two plastic bins to workers which contain inventory that they pull from to fill orders or to provide supplies to various departments.

The two-bin Kanban system is often used in manufacturing and other industries where there is a need to manage inventory levels and keep production flowing. The system is based on the principle of just-in-time production, which means that items are only produced when they are needed and not before.