Economic order quantity: optimise supply chain costs with Slim4

When it comes to determining how much inventory to order, supply chain teams face a real conundrum: Is it better to order a box or a pallet layer in order to minimise holding costs? Or, is it more financially beneficial to order a full pallet or even a container load to minimise ordering costs? Thankfully, this is where the Economic order quantity (EOQ) formula comes in to play!

By finding the perfect balance between ordering, holding and purchasing costs, the EOQ formula helps businesses to minimise costs while ensuring the right stock is ordered in the most efficient and cost-beneficial quantity.

Discover how Slim4 can help you identify the optimal order quantity for every SKU within your assortment!

economic order quantity with Slim4

Minimise supply chain costs with Slim4

Our inventory optimisation solution, Slim4, utilises the EOQ formula to help planning teams make more strategic decisions around order quantities.

Driven by dynamic forecasts which factor in seasonal influence, Slim4 calculates the optimal order quantity based on the historic demand, ordering costs, price and inventory costs. By applying the Economic formula, our inventory optimisation solution provides meaningful order advice for every SKU.

Ultimately, by helping supply chain teams to identify the optimal order quantity, businesses can determine whether it is better to order a box, pallet or container load. As a result, our customers are able to minimise supply costs while simultaneously mitigating the risk of excess, obsolescence and stock outs!

Key benefits

GREATER VISIBILITY OVER SUPPLY CHAIN COSTS

INCREASE EFFICIENCY & REDUCE EXCESS

INCREASE PROFITABILITY

FORM THE BASIS FOR FURTHER OPTIMISATION

Supreme imports reduce logistics costs amidst growth

RESULTS

  • Greater insight to make more strategic purchasing decisions
  • Availability improved to 99% across top lines
  • Increased efficiency of purchasing process

Check out our resources below

EOQ Secrets

Explore the theory behind the Economic order quantity in more detail with our guide to EOQ!

EOQ training

Enhance your knowledge around EOQ and understand how you can apply the formula with our supply chain masterclass! Click here to find out more!

Inventory costs

Identify, allocate and minimise inventory costs with our simple step by step guide! Download now!

Availability Vs. cost

Download our article on inventory costs and discover how can make your investment in inventory work harder!

Safety stock

Find out what factors you should take into account when determining the optimal level of safety stock inventory. Click here to read the full story!

Lead times

Understand the impact of lead time on your inventory and identify opportunities to pursue efficiency improvements. Download our guide to delivery lead times now

Erik de Witte

Slimstock UK

Your partner for inventory management

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