Economic Order Quantity: Optimizing Inventory with EOQ

Economic Order Quantity

Efficient inventory management serves as a cornerstone for the success of businesses, irrespective of their size or industry. It ensures the seamless flow of goods, prevents stockouts, minimizes holding costs, and maximizes customer satisfaction. Proper inventory planning allows businesses to maintain optimal stock levels, avoid excess inventory, and meet customer demands promptly, leading to improved […]

How to write a purchase order

  In the article Purchase Orders 4.0: welcome to Big Data Analytics, you have seen what we mean with the term purchase order. Basically, its purpose is to tell your supplier the quantity of a certain finished product or raw materials to be reordered. The most challenging task for your company in creating that purchase […]

Purchase Orders 4.0: welcome to Big Data Analytics

We all know what is the purpose of a purchase order: telling to your supplier that you want to buy some items that you’ll use for your production plan (in case of raw materials) or your retail/e-commerce activity (in case of finished goods). The items price is usually negotiated with the supplier, while the amount […]

About the replenishment order quantity

In this post we’ve talked about the definition of the reorder point in an advanced inventory replenishment optimization. It has turned out that both the estimated demand during the lead time and the safety stock level have to be considered in order to avoid stockouts. However, once it’s clear that a replenish of a product […]

Reorder Point in the Inventory Replenishment Optimization

If you are a manufacturing company or an e-commerce platform, your goal is to satisfy all the incoming demand for all the products you either produce or own, in other words, avoiding stockouts is a crucial aim. On the other hand, warehouse costs may be significant and thus, excess stock levels are not desirable. Inventory […]

Lead Time: Definition, Types and Examples

Lead time refers to the period between a project’s initiation and its completion. However, the project’s start and end differ from situation to situation and is thus defined by the industry and context of the process. The lead time for a manufacturing company might include the steps from the procurement of the raw materials, production, quality […]