The EOQ formula: From theory to practice in 7 steps
UNRAVELING THE SECRET OF OPTIMAL ORDER QUANTITIES
Whether it consists of raw materials or end-products: inventory is unavoidably one of the largest single assets on your balance sheet. In the manufacturing industry, around 37% of total costs consist of inventory costs, while for retailers and wholesalers even more than half of the total costs are caused by inventory. Owning, maintaining, and managing inventory costs a lot of effort and money. However, you need to have enough in stock to deliver customer service: no inventory, no deal. This paper discusses an indispensable inventory management figure: the economic order quantity.
Download or EOQ PDF! this PDF will provide you with the basic knowledge you need for the optimisation of your order quantities. Now is time to put it into practice!