The EOQ Formula: From Theory to Practice in 7 Easy Steps
Unraveling the Secret of Optimal Order Quantities
How to Use Slimstock’s "Economic Order Quantity in Practice" Model to Optimize Inventory In 7 Easy Steps
Inventory is unavoidably one of the largest single assets on your balance sheet. In the manufacturing industry, around 37% of total costs are inventory, while for retailers and wholesalers they are more than 50%. No company wants excess inventory, but you need to have enough in stock to deliver customer service. Simply put, you can’t sell what you don’t have.
To help you find the optimal order quantities for your business, this paper discusses an indispensable inventory management formula: the Economic Order Quantity, or EOQ.