Minimum order quantity (MOQ) is the smallest amount of inventory a retail business will purchase in order to keep costs low. The formula identifies the greatest number of units in order to minimize buying, holding and other costs. Economic order quantity.Įconomic order quantity (EOQ) is a formula for how much inventory a company should purchase with a set of variables like total costs of production, demand rate and other factors. Let’s take a look at some inventory control techniques you may choose to utilize in your own warehouse. Track and review each step of the process in order to minimize out-of-stock and overstocked inventory.Įspecially for larger apps with lots of moving parts, inventory management can become complex, encompassing several techniques and strategies. To better visualize these eight steps, try creating an inventory process map like the one below.
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