The answer is true. When goods or materials used in production need to be renewed, a system called two-bin inventory control is utilized. When the initial bin's contents are finished, a refill or replacement order is placed. The second bin should then be stocked with enough goods to endure until the first bin's order comes in.
The two-bin method uses two bins, materials either physically or on paper, and is also referred to as the min-max system. The first bin is meant to meet immediate demand, and the second bin is meant to meet demand while the replenishing is taking place.
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