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Inventory Planning Calculations: 10 Essential Formulas to Know
10 calculations every supply chain planner should know Most planners learned these numbers the hard way — standing at a dock door explaining to a buyer why their replenishment didn't land in time. Nobody hands you a cheat sheet on day one. You pick it up in pieces, usually after a miss. So here's the list, written the way I wish someone had handed it to me. Days of Supply: on-hand inventory divided by average daily demand. Simple, but I've seen teams carry 90 days of a slow-m
2 min read


Reorder Point vs. EOQ: What's the Difference?
Hey Warehouse and Operations Folk! Two terms that get tossed around a lot in inventory management are Reorder Point and EOQ (Economic Order Quantity). While they work together, they solve completely different problems in your supply chain. Let's break down what each one does and when to use them. What Is Reorder Point? Reorder Point = The inventory level that triggers a new order Key Features: • Safety net against stockouts • Time-based calculation • Demand-driven formula • L
3 min read
food distribution
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