⚖️ INVENTORY MANAGEMENT (EOQ, REORDER POINT)

Too much or too little inventory? Find the perfect balance.

Tools like Economic Order Quantity (EOQ) and Reorder Point help you optimize your inventory levels. Minimizes storage costs and avoids stockouts.

Key Points

EOQ: optimize order size 📦
Reorder point: when to order ⏰
Minimizes costs and avoids breakups ⚖️

Practical Example: An auto parts distributor calculated EOQ for 200 SKUs. Adjusted orders according to formula and reorder point. Reduced storage costs 28%, maintained service at 97%, and freed up $350K in excess inventory.

Reflection: What is your biggest challenge in inventory management?

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